Microsoft, Nuance CEOs on $16B deal, cloud strategy, health-care AI solutions and more
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- เผยแพร่เมื่อ 11 เม.ย. 2021
- Microsoft announced Monday that it will buy speech recognition company Nuance Communications for $56 per share, about 23% above its closing price Friday. The deal is worth about $16 billion and about $19 billion including debt. Nuance would be aligned with the part of Microsoft’s business that serves businesses and governments. Microsoft CEO Satya Nadella and Nuance CEO Mark Benjamin joined "Squawk on the Street" to discuss the deal. To see more of the interview with Nadella and Benjamin sign up for a free trial to CNBC Pro: cnb.cx/3dXEasX
Microsoft announced Monday that it will buy speech recognition company Nuance Communications for $56 per share, about 23% above its closing price Friday. The deal is worth about $16 billion and about $19 billion including debt.
It’s the latest sign Microsoft is hunting for more growth through acquisitions. The company is also reportedly in talks to buy the chat app Discord for about $10 billion. On top of that, Microsoft made an effort to buy TikTok’s U.S. business last year for about $30 billion before the deal was derailed.
The Nuance acquisition represents Microsoft’s largest acquisition since it bought LinkedIn for more than $26 billion in 2016. Last month, Microsoft completed its $7.6 billion acquisition of gaming company Zenimax.
Shares of Nuance were up 18% Monday morning. Microsoft shares were slightly positive.
Nuance would be aligned with the part of Microsoft’s business that serves businesses and governments. Nuance derives revenue by selling tools for recognizing and transcribing speech in doctor office visits, customer-service calls and voicemails. In its announcement, Microsoft said Nuance’s technology will be used to augment Microsoft’s cloud products for health care, which were launched last year.
In an interview on CNBC’s “Squawk on the Street” Monday, Microsoft CEO Satya Nadella highlighted Nuance’s health care tools as the key driver behind the acquisition.
“We’ve seen a massive accelearation of digital transformation… health care in particular,” Nadella said. “When you think about the provider market… digital tech is going to be the key.”
Nuance reported $7 million in net income on about $346 million in revenue in the fourth quarter of 2020, with revenue declining 4% on an annualized basis. Nuance was founded in 1992, and had 7,100 employees as of September.
Microsoft said Nuance CEO Mark Benjamin will remain at the company and report to Scott Guthrie,who is in charge of Microsoft’s cloud and artificial intelligence businesses.
Nuance has a strong reputation for its voice recognition technology, and it has been considered an acquisition target for companies like Apple, Microsoft and more for several years. Microsoft already has voice recognition built into many of its products, but it has recently shut down some products featuring its voice assistant Cortana.
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Sathya’s reaction, arching his eyebrows, at 4:29 is classic - when Cramer tells him to “somehow get access to (Epic’s) data...”.
Congratulations are in order!
Awesome move, amazing company! Long MSFT!
''Which of course is a Microsoft PC''
*Holds up a HP laptop*
I love Jim's question. Satya's response was a bit disappointing. But then again, he's not going to pick a fight with competitors on CNBC. That's strategy best kept behind the scenes.
That was lame.
Doctors will never spend more time with patients. Let patients be educated, aware and incharge like Jim’s referring there.
are we not gonna talk about how Cramer is showing a HP LAPTOP and telling Satya is a Microsoft laptop. 4.42 😂😂😂🤷♂️🤷♂️🤷♂️
It is a Windows laptop.
I can’t help but look at the Microsoft CEO and think “am I not turtley enough for the turtle club? Turtle”
@ I like this message.
thanks for sharing #healing
Love microsoft
for Christ's sake, oc
Will Microsoft buyout Microvision next MVIS ?
Buy MSFT
Then sell it.
no worries shep
i suppose voice recognition innovation will slow down significantly now.
Why?
It's gonna get hacked like swi?
While they look to the federal government for bailout of semi conductors
Semi conductors aren't edible.
@@Enfiare and it's not a reason for a federal tax collected but infrastructure is go figure
We need to invest into semi-conductors because Taiwan & China have beaten us in those areas. We must invest into on-shore manufacturing here in the US & Mexico.
@@txbre8758 Mexico? We can have those kids coming across the border bring the chips with them.
This was complete waffle and said nothing of real decision to buy Nuance.
Healthcare = access to health records
The second sweets macropharmacologically object because cushion spontaneously fire afore a rhetorical move. womanly, boundless disgust
i really hope no employees are underpaid at microsoft. They been on a complete shopping spree. Talk about monopoly 😆, they going to buy hasbro next
As someone who works in this ecosystem - most of Microsoft’s acquired companies work separately but together if that makes sense. It’s not a typical acquisition strategy. It’s more like they let the companies run themselves but integrate with Microsoft technologies. I hope that makes sense.
It’s kind of like how LinkedIn runs itself.
@@txbre8758 Duly noted. Thanks for the insights.
Can someone say monopoly?
Microsoft is not a monopoly
@@luisflorez9995 thankyou. They are very diverse
@@warriorz9451 They have tall, and short people. It won't be long until the Left requires them to fill racial quotas.
i hope congress breaks them up in the next couple of years 🤷🏽♂️
Don't be so eager to destroy things and think about creating something instead.
BUY NVIDIA for the chips. Best companies: Amazon, Apple, Facebook, Nvidia, Microsoft, Nvidia, Netflix, Zoom so these are the stocks you want to own.
Also Wells Fargo, Disney for the recovery. Resistance is futile.
No Tesla?