Microsoft buys mobile software company Danger

by Nancy Gohring

February 11, 2008 —

Continuing its push into the mobile consumer market, Microsoft
announced that it plans to acquire Danger,
the developer of software and services that run the Sidekick.

Danger's operating system and applications work in tandem with backend servers
to offer services such as games, social networking, Internet access, Web e-mail
and instant messaging. T-Mobile's
Sidekick, manufactured by Sharp,
is perhaps the best known Danger device.

Microsoft did not disclose financial terms of the deal or say if it planned
to continue to support the Danger mobile operating system, since Microsoft has
its own mobile operating system in Windows Mobile.

However, Microsoft indicated that it has plans for Danger's technology beyond
mobile phones. In a statement, Microsoft suggested it could combine Danger's
services with MSN, Xbox, Zune, Windows Live and Windows Mobile. In addition,
Microsoft said that Danger would join its Entertainment and Devices Division,
not specifically the Windows Mobile group, which is in that division.

Danger, based in Palo Alto, California, was founded by Andy Rubin, who later
went on to start a company called Android that Google
bought. Google's Android is a Linux-based mobile phone operating system.

While Danger has a loyal following, the company hasn't turned a profit. In
late 2007, it filed with the U.S. Securities and Exchange Commission to execute
a public offering, which may have been an indication that it needed money.

Sidekick fans have a mixed reaction to the news of the Microsoft acquisition.
In
an online forum, some people wrote that they were excited that Danger would
have better financial backing in order to further its research and development.
Others said they feared that Microsoft was essentially buying out the competition
and would soon discontinue Danger's products and services.

Microsoft has recently indicated that it is trying to attract more consumers
to Windows Mobile, which the market views as primarily a business tool. It recently
hired a new executive to focus on consumer marketing and the Danger buy could
help it acquire consumer customers.

IDG News Service