Microsoft Acquires Danger/Sidekick

Computer giant Microsoft has agreed to acquire Danger Inc., the company responsible for the popular Sidekick mobile device.Microsoft hopes the acquistion of the 10-year-old company will strengthen its position in the mobile consumer space.”Microsoft is a global leader with our Windows Mobile software and expanding mobile services,” said Robbie Bach, president of the Entertainment and Devices Division at Microsoft. “The addition of Danger serves as a perfect complement to our existing software and services, and also strengthens our dedication to improving mobile experiences centered around individuals and what they like.”Danger, based in Palo Alto, California, earned over $56 million dollars last year.The company derived most of its income through an exclusive deal with T-Mobile, which is expected to end in December of 2008.The company, which canceled a planned Initial Public Offering (IPO) of stock, boasts almost 920,000 subscribers.”Danger continues to provide an effortless and fun mobile experience for consumers,” said Henry R. Nothhaft, chairman and CEO of Danger Inc. “Now by combining our uncompromised application software and powerful back-end service with Microsoft, we can expand our innovative service offerings even further and take mobility to a new level.”Microsoft is expecting to combine Danger’s services with Microsoft’s connected entertainment and experiences technologies, including MSN, Xbox, Zune, Windows Live and Windows Mobile.

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