Documents related to Microsoft's potential acquisition targets have surfaced through the ongoing hearing against the FTC over the Activision Blizzard acquisition. This document revealed a number of high-profile targets, including the likes of SEGA, Square Enix, CD Projekt Red as well as plenty of smaller studios.
Microsoft was indeed considering making offers to acquire companies including Sega, Square Enix, CD Projekt Red, Bungie, IO Interactive and a host of other companies, including indie studios like Supergiant Games. The full table of companies on Microsoft's internal watchlist shows around 100 companies, but the table is also several years old and there is no indication that Microsoft approached any company on the list with an offer. However, rumours have long claimed that Microsoft wants to buy Sega and there were claims that the company had approached Bungie with an offer prior to Sony acquiring them.
Due to Sega being mentioned on the list, rumours about Microsoft having been in negotiations with the Japanese publisher resurfaced. Due to this, Sega did actually release a statement, with Shuki Utsumi, Sega COO, telling Bloomberg that there are “no plans to sell” but also noted that the company does have a good relationship with Microsoft.
Chances are, plans to acquire any other studios were dropped as soon as it became known that Activision Blizzard was potentially available. Microsoft will likely still acquire some studios after this acquisition if it goes through, but I don't expect them to attempt to buy another major publisher.
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KitGuru Says: It is worth noting that Microsoft did have an acquisition plan for Sega, which outlined details like keeping all games multiplatform, so franchises like Sonic would never become exclusives.