In 1996, Tim Draper bought Hotmail shares for $300,000. 2 years later, Microsoft acquired the startup for $400 million

Economic Times - Oct 1, 2026

Microsoft announced the Hotmail acquisition on December 31, 1997. It did not reveal how much it paid for the company. A later securities filing provided more detail. Hotmail’s owners received 2,769,148 Microsoft shares in the deal. Wired estimated those shares were worth about $400 million at the time.

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