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A 2001 Hotmail inbox layout embedded in Microsoft Outlook The old MSN Hotmail inbox from 2007. Hotmail was sold to Microsoft in December 1997 for a reported $400 million (~$705 million in 2023), and it joined the MSN group of services. [17] The sale had been preceded by a major incident in 1997 where all email was lost for 25% of mailboxes. [18]