Thursday, May 08, 2008

Microsoft in the Car Business with Hyundai

The visit of Microsoft Corporation (NASDAQ:MSFT)head Bill gates has caused a lot of attention in the international media as well as in Korea. You know that Microsoft was trying to acquire yahoo in the last few days and that is why, many journalists were interested to get any opinion of Bill Gates about this matter. However, visit of Bill Gates was more significant and important for another reason. Here, Bill Gates announced a partnership with Hyundai Motor Company (SEO:005380), which is the number one car maker of Korea.

Microsoft will work together and set up an autoit innovation center. Hyundai will invest $166 millions while Microsoft will invest another $113 millions. This is really a win-win situation for both the companies. The partnership with Microsoft will surely give Hyundai an edge over its competitors about designing and improving their cars. On the other hand, Microsoft is looking to break into other markets, other than just Windows Operating System and Office. In fact, right now, Microsoft products are mainly used at home and officers. Microsoft wants to spread its area of business and make more profits. So, the car industry can be a good place to be because you know that car industry is a very rich industry and it can bring a lot of revenue for Microsoft in the coming days.