Microsoft to spend $38m on expanding HQ

Microsoft is to splash out $38m to expand its Redmond headquarters – despite recent calls from CEO Steve Ballmer for the company to make $1bn worth of cuts.

The software behemoth will buy the premises of outdoor clothing seller Eddie Bauer if its bid is accepted, according to a court filing. Gates and friends should hope the choice of building isn't auspicious – the Spiegel Group, which owns the Eddie Bauer chain, went bankrupt last year.

The land is next to Microsoft's current campus in Redmond, Washington and covers around 20 acres, holding 232,763 square feet of offices in three buildings. It won't be an immediate takeover though, as Eddie Bauer will continue to lease the property for three years for around $3m a year.

Microsoft has been on a bit of a spending spree of late, buying property inside as well as outside the US. In May, silicon.com revealed the company would be opening a massive new campus in Hyderabad.