According to the CEO, Microsoft summoned him to Redmond and made an insultingly low offer to buy the company. They threatened to build their own product and put Brio out of business if he refused. He refused and MS later added pivot tables to Excel.
The article mentions Lotus, who apparently built a similar product around the same time. The Brio founders were involved with a company called Metaphor, and maybe some of the ideas were developed there...
Brio products shipped with a sample database, the contents of the CEO's wine cellar. That exact data could be seen on early Microsoft office boxes...