Microsoft finishes Danger takeover

Microsoft doesn't provide specifics as to the intentions behind the acquisition, but intends to create "cool, new, fun" experiences with cellphones, according to Ho.

The now-finalized buyout has already triggered claims that Microsoft may be designing cellphone hardware. While the new organization may change circumstances, Microsoft has normally kept its Windows Mobile division separate from the Entertainment and Devices division, which develops the Xbox 360 and Zune in addition to other, more hardware-focused projects. The acquisition is rumored to be worth $500 million, a reportedly high amount for a company like Danger.

Danger itself has never manufactured its own hardware, instead designing or co-designing Sidekicks with companies such as Motorola and Sharp while also creating the software used for the devices. The firm's efforts have often focused on non-traditional cellphone functions such as messaging and media, suggesting that Microsoft is looking to develop a vertically integrated phone.

Microsoft has in the past denied working on phones of its own, claiming the practice goes against its device-agnostic philosophy, but has contradicted its own stance with the wholly proprietary Zune. Microsoft continues to support its more widespread Windows Media format but has focused much of its attention on its own portable devices, which have taken marketshare from Microsoft partners.

Filed under: industry, gadgets
Other story tags: Microsoft, Windows Mobile, Zune, Sidekick, Danger