Who Owns Microsoft: It's Not Bill Gates Anymore!

To find out who owns Microsoft, you must understand that Bill Gates decided to sell most of his shares. So, who owns Microsoft now?

Few companies have become as famous as Microsoft in the dynamic global technology landscape.

Founded in 1975 by Bill Gates and Paul Allen, Microsoft quickly ascended from a small software startup to a behemoth in the tech industry, fundamentally reshaping how the world interacts with technology.

Central to this narrative has been the evolution of its ownership structure, particularly the changes in shareholding by co-founder Bill Gates, whose vision propelled Microsoft into the global spotlight.

From its initial public offering in 1986, where Gates held 45% of the company’s shares, his role as a shareholder has undergone significant changes, mirroring his shifting involvement with the company.

Over the decades, Gates systematically reduced his stake. This process reflected his transition from Microsoft’s operational helm to philanthropic endeavours and marked fundamental strategic shifts within Microsoft.

Gates’s reduced stake and the corresponding rise of institutional and diverse individual investors have influenced Microsoft’s governance and strategic direction, accommodating broader interests while steering the company through new technological frontiers and market challenges.

Table of Contents

Key Facts About Microsoft

Company name:

Microsoft

Founders:

Bill Gates and Paul Allen

Launch date:

April 4, 1975

Year founded:

1975

Company CEO:

Satya Nadella

Headquarters

Redmond, Washington

Number of employees

221,000 (2023)

Ticker symbol

MSFT

Annual revenue

$211.915 billion (2023)

Profit | Net Income

$72.4 billion (2023)

Market Cap

$3.06 trillion (April 2024)

Microsoft Subsidiaries

LinkedIn Corporation – A professional networking platform acquired by Microsoft in 2016.
GitHub, Inc. – A platform for software development and version control using Git, acquired in 2018.
Skype Communications S.a.r.l – A telecommunications application providing video chat and voice calls, acquired in 2011.
Mojang Studios – The Swedish game developer known for creating the popular game Minecraft, acquired in 2014.
Zenimax Media Inc. – A media company known for its video game publishing through subsidiaries like Bethesda Softworks, acquired in 2021.
Nuance Communications, Inc. – A technology company known for its conversational AI and cloud-based clinical intelligence for healthcare providers, acquired in 2021.
Xamarin Inc. – A company that provides tools for developing mobile applications, acquired in 2016.
PlayFab, Inc. – A backend platform for building and managing live games, acquired in 2018.
Compulsion Games – A video game development studio based in Canada, acquired in 2018.
Obsidian Entertainment – An American video game developer known for RPGs, acquired in 2018.
Rare Ltd. – A British video game developer, acquired in 2002.
Double Fine Productions – A game development studio known for titles like Psychonauts, acquired in 2019.
Nokia’s Devices and Services Division – Acquired in 2014 to bolster Miicrosoft’s mobile capabilities.
aQuantive, Inc. – A digital marketing service and technology company acquired in 2007.
Visio Corporation – A diagramming and vector graphics application acquired in 2000.
Dynamics 365 – Formed from the acquisition of Great Plains Software and Navision, which are now integrated into Microsoft’s enterprise resource planning (ERP) software suite.
Bungie, Inc. – Initially acquired in 2000 and later became independent in 2007, but pivotal in developing the Halo series for Xbox.
InXile Entertainment – A video game development company known for its role-playing games, acquired in 2018.
Adallom – A cloud security company acquired in 2015.
RiskIQ – A global threat intelligence and attack surface management leader, acquired in 2021.

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The Quick Answers To Who Owns Microsoft

Who Owns Microsoft – institutional investors

Vanguard Group – 8.38% about 622.5 million shares with a total value of approximately $196.5 billion.
BlackRock – 4.59% of the shares, equivalent to about 338.3 million shares valued at around $111.1 billion.
State Street Global Advisors – 3.95% which is approximately 293.6 million shares worth about $92.7 billion.
Norges Bank Investment Management – 1.16% quivalent to 86.3 million shares valued at approximately $28.3 billion.
Capital Research & Management Co. – 1.15% with about 85 million shares valued at nearly $28 billion.

Does Bill Gates Own Microsoft?

Bill Gates owns approximately 0.53% of Microsoft, which equates to around 39.2 million shares. This stake represents a significant decrease from his earlier holdings as he has gradually divested shares over the years, partly for philanthropic purposes.

Who owns most of microsoft?

The largest single shareholder is Vanguard Group who control 8.38% of Microsoft shares equivalent to 622.5 million shares with a total value of approximately $196.5 billion.

Who Owns Microsoft Now

Institutional Investors Who Own Shares in Microsoft

Institutional investors significantly influence Microsoft’s ownership structure.

According to data from Nasdaq as of February 9, institutional investors hold 69.14% of Microsoft’s outstanding shares.

This dominance of institutional holdings is a common trait in the software industry. However, Microsoft trails behind peers like Synopsys, Palo Alto Networks, and Adobe, where institutional holdings surpass 80% of shares.

Institutional investors, including large entities such as investment banks, mutual funds, and pension funds, contribute to the stability and liquidity of Microsoft’s stock.

They typically make long-term investments based on detailed analysis conducted by experienced analysts.

For instance, Vanguard Group holds the largest share of Microsoft stock among institutional investors, owning 649.20 million shares, or 8.7% of total outstanding shares.

Blackrock follows with 538.93 million shares, accounting for 7.1%.

Other key institutional shareholders include State Street Corporation, Fidelity (FMR LLC), and T Rowe Price Associates.

Individual Shareholders Who Own Shares In Microsoft

Alongside institutional investors, individual shareholders play a critical role in Microsoft’s ownership dynamics.

Insiders and retail investors collectively hold a smaller yet influential portion of the company’s shares. As reported by Wallstreet Zen, insiders account for 6.24% of Microsoft’s market share, and retail investors account for 24.56% of Microsoft’s market share.

High-profile individuals like former CEO Steve Ballmer significantly impact perceptions of the company’s stability and future prospects.

Ballmer holds approximately 4% of Microsoft’s shares, underscoring his ongoing investment and belief in the company.

Other notable individual investors include Bill Gates and current executives such as Satya Nadella and Bradford L. Smith. Each holds shares that, while smaller, indicate a personal stake in the company’s success.

Top 3 Individual Insider Shareholders at Microsoft

Satya Nadella As of March 2024, Satya Nadella holds 801,331 shares of Microsoft. Appointed CEO in 2014, Nadella has been with the company since 1992, driving significant growth in Microsoft’s cloud services. His leadership has been pivotal in enhancing Microsoft’s cloud infrastructure, as he previously worked at Sun Microsystems.

Bradford L. Smith Bradford Smith possesses 570,826 shares as of February 2024. He is the President and Vice Chair, initially joining Microsoft as general counsel in 2002. Smith spearheads the company’s major public initiatives, including cybersecurity and environmental sustainability, and has a background in law with Covington and Burling.

Kathleen Hogan Kathleen Hogan owns 159,764 shares as of March 2024. As Executive Vice President and Chief Human Resources Officer, she focuses on the welfare of over 220,000 employees globally. Recognised as HR Executive of the Year in 2021, Hogan is active in various HR and technology boards and contributed significantly during the COVID-19 pandemic.