Microsoft Buys Danger

POSTED February 13, 2008

REDMOND, WA -- Could a Zune phone be on the way soon?

Microsoft Corp. announced it will acquire Danger Inc. of Palo Alto, the company that makes software and services powering many popular consumer handsets. The acquisition will align Danger's nearly 10 years of expertise in the mobile consumer space with Microsoft's vision to provide innovative and compelling mobile experiences to a growing base of customers.

"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."

Terms of the agreement were not released but it has been rumored that Microsoft paid $500 million for the company.

The Palo Alto-based company provides services that allow people to keep in touch, stay organized and keep informed while on the go through real-time mobile messaging, social networking services and other applications all blended together on a single phone that is intuitive and customizable. The company is best known for the Sidekick mobile e-mail device with web browser.

"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."

Through focused efforts Danger has successfully delivered a software and services platform to the mobile mass market. Applications on Danger-powered handsets include HTML Web browsing, instant messaging, games, multimedia, social networking, Web e-mail and personal information management applications.

Combining these services with Microsoft's connected entertainment and experiences technologies, including MSN, Xbox, Zune, Windows Live and Windows Mobile, will provide Microsoft with the tools to accelerate its work to create industry-leading entertainment and communication experiences for consumers.

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