The Clap
Microsoft (NASDAQ:MSFT) will buy a 4% stake in the London Stock Exchange Group (LSEG) for $2bn.
What
The deal is expected to bring significant revenues to the LSEG starting in 2025 by selling its products through Microsoft apps, giving the group access to a larger customer base.
So What
More agreements and deals between tech giants and financial institutions have prompted regulators to monitor their relationships more closely.
In November 2021, Nasdaq and Amazon agreed to a multi-year deal, while Google invested $1 bn in CME Group to move the trading systems to its cloud.
Now What
This deal comes as part of a long-term partnership between Microsoft and the LSEG. The LSEG CEO expects customers to begin seeing the benefits of the new products around 2 years from now.