Microsoft acquires video editing software startup Clipchamp

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Satya Nadella, Chief Executive Officer of Microsoft Corp., speaks during the Future Decoded Tech Summit in Bengaluru, India on Tuesday, February 25, 2020. Microsoft will open a new data center region in Spain, expanding its strategic partnership with Telefonica SA, so the statement from Telefonica.

Photographer: Samyukta Lakshmi / Bloomberg via Getty Images | Bloomberg | Getty Images

Microsoft announced Tuesday that it had acquired Clipchamp, a start-up with software that enables consumers and corporate employees to edit videos. The terms of the deal were not disclosed.

The technology is in line with Microsoft’s years of efforts to expand its range of productivity software for both home and business users. When Microsoft announced upcoming price increases for its Office 365 subscriptions in August, it pointed to additions to the bundle, including the communication app Teams.

While Clipchamp offers a Windows app, part of the power of the service is that it has access to online computing resources.

“Clipchamp’s technical approach is to combine the simplicity of a web app with the ability to process video using the full processing power of a graphics processor-accelerated PC, which was previously limited to traditional video applications,” said Chris Pratley, Corporate Vice President of the Office Media Group at Microsoft, wrote in a blog post.

The Clipchamp services are not yet available through a Microsoft licensing program, a Microsoft spokesman told CNBC in an email.

“As the integration planning continues, we will have a process to eventually convert existing Clipchamp users / customers into Microsoft subscribers,” said the spokesman.

Clipchamp was founded in 2013, is based in Brisbane, Australia and, according to LinkedIn, has 92 employees. Investors include Ten13 and Tola Capital.

In July, Clipchamp announced that it had 17 million registered users, with an acceptance of over 390,000 companies, 54% more than last year. According to the Clipchamp website, companies that use its software are Deloitte, Google, Microsoft, and Zendesk.

The start-up reported 140% export growth in the 9:16 aspect ratio that works with Facebook’s Instagram Stories and TikTok. People also used Clipchamp for screen capturing and webcam recording. As the pandemic persisted into the second quarter, Facebook said it had 3.51 billion monthly users of its app family, up 12% year over year.

The announcement comes three weeks after Adobe announced it was buying Frame.io for $ 1.275 billion, whose software allows users to comment on videos as they edit. Microsoft itself has previously shown interest in video after participating in talks last year to acquire TikTok’s US business. TikTok ultimately decided not to pursue this deal any further. And in 2018 Microsoft acquired the education-oriented video start-up Flipgrid.

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