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Until May 10 2005 the special feature of including dots in the email address wasn't available, but with growing competition from other free email providers like Gmail and Yahoo, this feature made available to users.

Hotmail was backed by the venture capital firm Draper Fisher Jurvetson and was later sold to Microsoft corporation, which rebranded it under its MSN umbrella. By December 1997, Hotmail reported more than 8.5 million subscribers. [1] By February 1999 it reported more than 30 million active members. [2] Hotmail serves e-mail accounts in many countries. Hotmail is currently the largest webmail provider.

On November 18, 2004, Hotmail began offering email addresses from several country-specific domains. Now users can register a @hotmail.co.uk address. MSN had run auctions on eBay for popular addresses and the money had been donated to the NSPCC.