Digital River, manager of Microsoft’s Online Store, extends contract, shares up 43%
Two weeks ago, Digital River, the global commerce, payments, and marketing company, announced that its service agreement with Microsoft, with which it has done business since 2006, was in jeopardy, and that they had extended Microsoft’s ability to decline to extend the agreement from December 1st to December 19th . That didn’t go over to well with investors, and stocks of the company fell some 24%. Today, however, Digital River announced that the two companies have reached an agreement to extend their digital distribution until March, 2017.
The news sent stock prices for Digital River soaring, and it’s now trading up some 43% on the day so far. The company also announced that it has received permission from the FTC to move ahead with its planned acquisition by The Siris Capital for $26 per share in cash, or about $840M.
Digital River “builds, hosts, and manages Microsoft’s online store that sells both hardware and software”, according to The Street.Further reading: Digital River, Microsoft, Microsoft Store