MicroVision, is a company that develops PicoP scanning technology to create high-resolution miniature projection, and three-dimensional sensing and image capture solutions in the United States and Asia. With their highly advanced technology, they have been supplying the parts needed to produce true modern tech marvels. One of those marvels? Microsoft’s Hololens.
Statement from MicroVision
On May 1st, MicroVision filed a DEFA14A form with the SEC. A DEFA14A form is a filing with the Securities and Exchange Commission (SEC) that must be filed by or on behalf of a registrant when a shareholder vote is required. In this particular case, MicroVision is asking shareholders to vote FOR a stock reverse split.
Within the filing, MicroVision states that “An approval of Proposal 3 will enable MicroVision to maintain our listing on the Nasdaq Global Market, provide you with liquidity for your investment and help facilitate a tender offer or exchange of shares in a sale or merger transaction.”
They continue to state that “The Board of Directors understands that some shareholders are reluctant to authorize a reverse stock split but believes strongly and unanimously that the Company and shareholders will be served best by voting FOR Proposal 3.”
Analyzing key statements put out by MicroVision such as these, leads us to strongly suggest that the company might have a buyout of some sorts in the works. Especially when they specifically state a plan that could potentially lead to a buyout, instead of just the standard “maximize shareholder value” statement by itself.
It’s important to note that a company may announce a reverse stock split in order to carry out a merger with or acquisition of another company. In this particular case, MicroVision carrying out a reverse split gives them a position of power. Avoiding delisting allows the company to negotiate a proper deal and acquire the best deal to maximize shareholder value.
Given MicroVision has explicitly stated they are exploring the possibility of a buyout, identifying potential buyers is the next step, and multiple signals are pointing to Microsoft.
Wheres the Evidence for a Microsoft Buyout?
Microsoft, one of the worlds largest companies , with cash on hand around the $140 billion mark, could easily buyout a company like MicroVision with just a $58 million dollar market cap.
But what evidence leads to such an outcome?
Ex MicroVision Employees Now at Microsoft
After some research by the community, a staggering amount of ex Microvision employees have been scooped up by Microsoft over the years. This growing list leads to suggest that Microsoft is very interested in MicroVisions technology and capabilities.
Josh Miller – Director of Engineering at Microsoft and former Lead Systems Engineer – HoloLens (6 years at MVIS as Director of System Engineering)
Scott Woltman – Director Hardware Engineering at Microsoft (5 years at MVIS as Senior Staff Engineer, Systems)
Richard James – Director of Optical Engineering HoloLens, former Director of Sourcing – Advanced Optics (14 years at MVIS as Director, Opto-Mechanical Engineering)
Wyatt Davis – Principal Engineer at Microsoft (15 years at MVIS as Principal Engineer/MEMS Technical Lead)
Jeb Wu – Principal Hardware Engineer HoloLens HW Design at Microsoft (5 years at MVIS as Sr. Staff Engineer)
Johnson Liu – Principal Optical Engineer (3 months at MVIS as Staff Engineer)
Mark Champion – Principal Systems Engineer (6 years at MVIS as Principal Engineer)
Mason Thomas – Principal Program Manager (3 1/2 years at MVIS as Lead Systems Engineer for DARPA eye ware display)
Greg Gibson – Senior Electrical Engineer at Microsoft (11 years at MVIS as Electronics Engineering Manager)
Daniel Nevistic – Hardware Development Engineer – (2 years at MVIS as Electronics Engineer)
Michael Beard – Senior Optics Test Manager – HoloLens, Senior Hardware Engineer (8 years at MVIS as Lead Systems Engineer of Image Quality)
Shawn Swilley – Senior Hardware Engineering Manager, former Sr. Hardware Engineer (7 years at MVIS as Senior Staff Engineer)
Justin Zilke – Embedded Systems Engineer (4 years at MVIS as Lead Engineer, Embedded Firmware)
Minhua Liang – Optical Engineer (6 years at MVIS as Sr. Staff Engineer)
Damon Domjan – Senior Embedded Systems Engineer (5 years at MVIS as Firmware Engineer)
Robert Hilker – Manager HW Test Engineering at Microsoft (11 years at MVIS as Director, Global Manufacturing Technology)
Bill Woodland – Sr. Director Strategic Sourcing (9 years at MVIS as Sr. Director)
Taha Masood – Sr. Manager for Strategic Technology Sourcing for Augmented & Mixed Reality Products at Microsoft (6 years at MVIS as Director, System Engineering, Design-Win and Technology Integration) [Editor's Note: Taha now works for Facebook]
Jack Clevenger – Sr. Program Manager (12 years at MVIS as Sr. Program Manager)
Moh Eslamy – Process development working for both Microsoft and MicroVision (6 years at MVIS managing high volume manufacturing/assembly processing for laser projector)
Karlton Powell – Senior Researcher (8 years at MVIS as Senior Research Engineer)
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.
Microsoft is Currently Using MicroVision Technology in their Hololens
On March 31, 2020, Microvision agreed to an agreement for its April 2017 customer to take over production of the components MicroVision had been producing for the customer. Beginning in March MicroVision started earning a royalty on each component shipped that was approximately equal to the gross profit it earned on each component it had previously produced.
Around the same exact time, Microsoft started expanding production capabilities for its Hololens in order to meet higher demands for the product.
And to follow that up, the Army which is currently planing to equip its first units with the Integrated Visual Augmentation System toward the end of next year, thanked Microsoft for the expanded commitment to meet production demands.
“Our Microsoft partners have been outstanding in reforming the supply chain where necessary and continuing on with the development in their production and manufacturing facility in California”
And if the dots aren’t connecting enough, immediately after this on April 6th, MicroVision stated their first clue of possibly entering a buyout of some sort. “As we reported on March 11, we are actively engaged with multiple interested parties to evaluate various opportunities to license our IP as well as other strategic alternatives.”
While no one knows for sure if MicroVision’s technology is in the Hololens, there have been some confirming reports stating that may be the case (found under Hybrid Arrive section).
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