Microsoft (MSFT) & Microvision (MVIS): Is an acquisition still possible?

After months of rumors floating around that Microsoft (MSFT) may acquire Microvision (MVIS), investor sentiment has changed.

Microvision eventually arrives into the market for its goods in the fields of self-driven vehicles, virtual reality (AR) smart glasses and connected home apps at just the same moment.

Right means for Microvision: They are expected now and certain businesses in these potential industries will then be willing to pay at least reasonable, if not competitive, rates for Microvision or Microvison product lines.

Around the same period, as the following product acquisitions indicate, the COVID-19 pandemic doesn’t seem to have a detrimental effect on business valuations. After several years of negative news not just for Microvision but for its owners in particular, the tide suddenly appears to turn for the better. That is what it needs.

Now, on 30 June 2020, Alphabet / Google (GOOGL) shocked the market with the news that it had taken over North Inc. for USD 180 million, reported to be on the edge of bankruptcy owing to loss of revenue and profits:

Smart-glasses maker @focalsbynorth, once one of Canada’s most high-profile startups, is being bought by Google/Alphabet for about $180-million, sources say. We’ve learned the company likely sold very, very few Focals and was running out of money.

There’s actually a comparable condition to the one Microvision is in. Microvision, though, already has capital before the end of the year at least

Interested parties frequently say in articles and comments on Microvision here and here at Finding Alpha that it would be cheaper and easier for investors to first let a company go bankrupt, then buy up the properties. However, it seems that this philosophy will not reign among all top executives that plan to buy firms of this size. The same refers to the statements that a technology is not yet completely developed, which is often objected to in relation to LiDAR innovations by Microvision.

I believe MicroVison’s future lies in developing our Perceptive Automotive Lidar products and entering partnerships with automotive Tier 1 suppliers. Since 2019 we have been actively engaged with presenting our technology roadmap to automotive OEMs and Tier 1 suppliers, and have continuously received positive feedback on our products and potential partnership structures. We are currently developing our first Automotive Lidar samples targeted for OEM demonstration in Q4 2020. I believe our Perceptive Lidar products will bring true solid-state Automotive Lidar capable of an operating range greater than 200 meters with perceptive edge computing in full sunlight first-to-market. My desire to relocate to Seattle four and a half years ago and join MicroVision was rooted in what I knew would be possible with our core technology applied to Perceptive Lidar products.

Sumit Sharma, CEO at Microvision (MVIS)

Why Microsoft (MSFT) could buy Microvision (MVIS)

After some research, a huge number of former Microvision employees have been scooped up by Microsoft over the years. This growing list suggests that Microsoft is very interested in the technology and capabilities of MicroVisions.

Given both companies are headquartered in Redmond, WA, a Microsoft acquisition of MicroVision could be an extremely easy transition for both the company and employees. 

Is Microvision (MVIS) a smart investment?

Shares of Microvision (MVIS) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several months. The majority of the metrics point to this investment being highly attractive.

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Tim Rolle
Tim Rolle

Investor of 6 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.

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