The software sector’s big brother Microsoft Corporation (Nasdaq: MSFT) has acquired Flipgrid, a social learning platform that facilitates students to make videos and share them publicly or privately using iOS and Android devices. Notably, a week before, the company finalized the acquisition of Github, a platform for software coders. As discussed below, the well-planned acquisition of Flipgrid could open the way for further introduction of Microsoft’s products at the school level.
The Redmond, Washington-based company continues to move forward in its plans to popularize its range of products at the school level. The software giant is fully aware that habits cannot be changed easily. Once children start using its software, it could be easy for Microsoft to push its projects into the market with relative ease as the children grow up.
The platform boasts of 20 million users, including parents, teachers, and students – from Pre-K all the way up to research candidates (Ph.D.). The platform, which is somewhere between a homework assignment board and social network, is used in more than 180 countries. Flipgrid works on all devices such as tablets, PCs, and phones.
Until yesterday, Flipgrid was charging $65 per educator per year, $800 per year for a district, and $1,000 per year for a school. It also offered a free plan with limitations. Microsoft, however, has decided to offer Flipgrid free for schools. Accordingly, schools can claim a refund of the fee paid. It can be remembered that the company is offering Office 365 for free.
The Minneapolis-based Flipgrid was established in 2015. At that time, the startup company, which was then known as Vidku, raised $17 million in 17 days. It was headed by Phil Soran, a serial entrepreneur, and Jim Leslie, a tech veteran. Leslie and Soran guide the company as CEO and Executive Chairman. Initially, Vidku aimed to launch an enterprise-level product, but scrapped the idea and rechristened itself as Flipgrid.
Microsoft has assured that it will continue to support Flipgrid across Google and other partner networks. Flipgrid will continue to function as an independent entity, similar to LinkedIn.
Flipgrid’s VP of user engagement Joey Taralson said “It’s gonna be Flipgrid and we’re gonna be out there serving Flipgrid customers.”
Taralson revealed that the plan of Microsoft to offer Flipgrid for free was one of the main deciding factors for selling the company.
Eran Megiddo, Microsoft’s corporate VP of education said that almost every school he visited in the past five years used Flipgrid in some way or the other. Megiddo also praised that Flipgrid platform encourages both students and parents to get involved with the course-related work. As more schools start using Microsoft’s products, it would be better for the company, says Megiddo. Therefore, we expect the market to have a bullish view of the acquisition.
As shown in the price chart below, the stock has broken the ascending triangle pattern. So, we can now expect an ab=cd formation. The ascending on-balance volume indicator also indicates a possible rally in the stock. Based on the probable ab=cd formation, we are expecting the stock to attain a level of 114 in the days to come.
To gain from the uptrend, we are planning to acquire a call option contract from a reliable binary broker. The option should remain active for a period of one week. Furthermore, at the time of investing in the option contract, the stock of Microsoft should be trading at about $100 in the Nasdaq.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
