Hotmail is one of the oldest names in internet email, and millions of people still use an @hotmail.com address every day. The brand itself was retired years ago, so many users wonder who is really behind their inbox. The short answer is Microsoft, but how a small California startup ended up there is a far better story.
Who Owns Hotmail in 2026?
Microsoft Corporation owns Hotmail and has owned it since the end of 1997. Today the service runs as Outlook.com, and old @hotmail.com addresses still work through it as part of a Microsoft account.
Microsoft trades on the Nasdaq under the ticker MSFT and is based in Redmond, Washington. No single person or family controls it, so Hotmail effectively belongs to Microsoft’s shareholders.
Ownership and Key Stakeholders Table
| Owner / Party | Role | Approx. Stake | Key Detail |
|---|---|---|---|
| Microsoft Corporation | Owner since 1997 | 100% of Hotmail / Outlook.com | Nasdaq: MSFT; HQ in Redmond, Washington |
| Sabeer Bhatia | Co-founder | Sold in 1997 | Launched Hotmail on July 4, 1996 |
| Jack Smith | Co-founder | Sold in 1997 | Later led Hotmail engineering at Microsoft |
| Draper Fisher Jurvetson | Early venture backer | Exited at the sale | Funded Hotmail before the Microsoft deal |
| Satya Nadella | Microsoft Chairman and CEO | ~0.01% of Microsoft | CEO since 2014, chairman since 2021 |
| Vanguard | Largest Microsoft shareholder | ~8.95% of Microsoft | Per Microsoft’s October 2025 proxy |
| BlackRock | Second-largest shareholder | ~7.30% of Microsoft | Per Microsoft’s October 2025 proxy |
| Steve Ballmer | Largest individual holder (reported) | ~4.5% of Microsoft | Based on his last filed disclosure in 2014 |
What Is Hotmail?
Hotmail was one of the first free webmail services. It launched on July 4, 1996, a date chosen to suggest freedom from provider-based email, according to Wikipedia’s Outlook.com entry. People could finally check their inbox from any browser, anywhere.
The original spelling was HoTMaiL, a nod to HTML, the language used to build web pages. That small detail tells you how new the whole idea felt at the time.
The Founders Behind Hotmail
Hotmail was created by Sabeer Bhatia and Jack Smith, two colleagues from Apple. The spark came when a firewall at their workplace blocked access to their personal email, as Bhatia explained on Hsu Untied.
The pair raised money from venture firm Draper Fisher Jurvetson and grew quickly through a simple viral marketing mechanism. By the time Microsoft came calling, Webopedia reports the service had more than 8.5 million users.
How Microsoft Bought Hotmail
Microsoft completed the acquisition at the end of December 1997, as CNET covered at the time. The reported price was around $400 million, though some accounts put it as high as $450 million.
Bhatia has said Microsoft’s first offer was only about $140 million, which he turned down, per India.com. Jack Smith joined Microsoft and led Hotmail engineering, while Bhatia stayed for nearly a year before leaving to build new ventures.
From MSN Hotmail to Outlook.com
After the deal, the service became MSN Hotmail, later Windows Live Hotmail, and then simply Hotmail again in October 2011. Outlook.com arrived on July 31, 2012, and by May 2013 the switch was complete.
Tech Monitor notes that more than 300 million accounts moved over in the migration. Existing @hotmail.com addresses still work today through the Outlook website or the Outlook app, while Microsoft steers new sign-ups toward @outlook.com.
Who Are Microsoft’s Biggest Shareholders?
No single investor controls Microsoft. According to the October 2025 proxy summarized by AI Funding Tracker, only two holders own more than 5%: Vanguard at about 8.95% and BlackRock at about 7.30%.
Both are index-fund managers, so the real owners are millions of everyday savers. Large investment firms like these hold passive stakes rather than running the company. Co-founder Bill Gates has sold down most of his holding over the years, which you can read about in Microsoft’s ownership story.
Steve Ballmer is widely reported as the biggest individual holder at around 4.5%, but that figure rests on a 2014 filing, so treat it as an estimate. Hotmail now sits in a family that also includes LinkedIn and GitHub.
Hotmail, Gmail, and Yahoo Mail Have Different Owners
People often mix up the big three free email services, but each has a very different parent. Gmail belongs to Google, which sits under Alphabet, as laid out in the story of who owns Google. You can also check Gmail’s history on Wikipedia.
Yahoo Mail belongs to Yahoo, which is about 90% owned by Apollo and 10% by Verizon, as explained in who owns Yahoo. Hotmail has never belonged to either company.
What’s Happening With Microsoft Email This Week
On November 12–13, 2026, Microsoft suffered a widespread outage hitting Outlook, Teams, and other services. ABC News reported that Microsoft saw no sign of malicious activity and was recovering service gradually.
Earlier this week, Windows Central reported that some mail to Outlook.com, Hotmail, Live, and MSN addresses bounced because of an update that Microsoft later rolled back. These are service problems, not ownership changes.
Frequently Asked Questions (FAQs)
Q1. Who owns Hotmail in 2026?
Microsoft owns Hotmail and runs it as Outlook.com.
Q2. When did Microsoft buy Hotmail?
Microsoft acquired Hotmail in December 1997 for a reported $400 million.
Q3. Who founded Hotmail?
Sabeer Bhatia and Jack Smith launched it on July 4, 1996.
Q4. Is Hotmail the same as Outlook?
Yes, Outlook.com replaced the Hotmail brand in 2013 and uses the same accounts.
Q5. Does Hotmail still exist?
Existing @hotmail.com addresses still work through Outlook.com.
Q6. Is Hotmail owned by Google or Yahoo?
No, Gmail belongs to Google and Yahoo Mail belongs to Yahoo.
Q7. Who is the CEO of Microsoft?
Satya Nadella has been CEO since 2014 and chairman since 2021.
Q8. Who are Microsoft’s biggest shareholders?
Vanguard (about 8.95%) and BlackRock (about 7.30%) lead the list.
Official website: outlook.live.com
Hotmail is owned by Microsoft, which bought it from founders Sabeer Bhatia and Jack Smith in December 1997 for a reported $400 million. The brand was folded into Outlook.com by 2013, but the old addresses and accounts live on.
Microsoft itself is publicly traded, with Vanguard and BlackRock as its biggest shareholders and Satya Nadella at the helm. So when you open your old Hotmail inbox, you are using a product owned by one of the most widely held companies in the world.