Which email service, founded by Sabeer Bhatia and Jack Smith, was later sold to Microsoft?

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The email service founded by Sabeer Bhatia and Jack Smith was Hotmail, later sold to Microsoft.

Bhatia and Smith developed the idea of free, browser-based email while working in Silicon Valley. Their goal was to let people access messages from any computer connected to the internet, rather than tying email to a particular internet service provider or desktop machine.

Hotmail launched on July 4, 1996. The date symbolized independence from ISP-controlled email, and the service quickly attracted users because registration was free and access worked through a web browser. Its name was styled as HoTMaiL, highlighting the HTML technology underlying web pages.

Microsoft agreed to acquire Hotmail in December 1997 for a reported $400 million, with the transaction completed around the end of that year. Hotmail later became part of Microsoft’s online communications products and was eventually integrated into Outlook.com. A common mix-up is treating Hotmail and Outlook.com as completely separate services; Outlook.com is the modern successor to the Hotmail brand.

Source: Wikipedia · fact-checked Sept. 2026

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