MSFT · 10-K · 2025A · Full report
Acquisition / Partnership / Divestiture
MICROSOFT CORP · 2025-07-30 · Importance 53 · Surprise 60
Microsoft maintains a long-term strategic partnership with OpenAI established in 2019, is a major investor, and recognizes reciprocal revenue-sharing and exclusive Azure API arrangements; the company also holds rights to OpenAI intellectual property and has a right of first refusal on OpenAI capacity needs. The Activision Blizzard acquisition materially impacted Gaming: Xbox content and services revenue increased 16% in fiscal 2025 driven by the impact of the Activision Blizzard acquisition and Xbox Game Pass, and Gaming-related operating expenses increased (More Personal Computing operating expenses rose $1,258 million or 9% driven by Gaming, including Activision). Other, net in other income (expense) primarily reflects net recognized losses on equity method investments, including OpenAI, which contributed to a $4,725 million loss in other, net in fiscal 2025.
Key facts
- Cash used in investing decreased $24.4 billion to $72.6 billion for fiscal year 2025, primarily due to a $63.2 billion decrease in cash used for acquisitions of companies, net of cash acquired and divestitures, and purchases of intangible and other assets.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +3.9% | Cash used in investing decreased $24.4 billion to $72.6 billion for fiscal year 2025, primarily due to a $63.2 billion decrease in cash… |