Microsoft buys mobile software company Danger

As part of its push into the mobile sector, Microsoft has acquired Danger, the company that makes the software and services for T-Mobile's Sidekick

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 back-end servers to offer such services 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 as 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, Calif., 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.

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