Microsoft Buys Another Desperate Company: Danger Goes To Redmond

from the danger,-danger,-bill-gates dept

It would appear that Microsoft's M&A team isn't solely focused on Yahoo these days. Back in December, we noted that Danger, makers of the Sidekick mobile phone device, was planning to IPO, despite not having a track record worth an IPO. As we noted at the time, it seemed like the company was going to IPO because that was its only option. The truth is probably that the company was desperately looking for a buyout, and now Microsoft has come through. It will be worth watching to see what Microsoft does with Danger, as Danger does not use Microsoft's operating system, and its model is not based on licensing software, but in taking a toll from service fees. It would take quite a bit of effort to pull out Danger's OS, which was very carefully designed for the device itself, and replace it with Windows Mobile (and it also might lead Sidekick fans to flee to other devices). All in all, it's an odd sort of acquisition for Microsoft. One would hope that the company actually has more specific plans on what to do with Danger, because the obvious fit isn't apparent. From Danger's perspective, though, an acquisition by anyone at this point has to be viewed as a better option than trying to IPO, which almost definitely would have been a disaster.
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Filed Under: desperation, mergers
Companies: danger, microsoft

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  1. identicon
    4-80-sicks, 11 Feb 2008 @ 10:52am

    Whee! It's like the 90s all over again! Except then, Microsoft was the "desperate" party, trying to buy anything that looked like potential competition. Danger doesn't look like it fits that model? Well, just like with the xBox (XBox? Xbox? XBOX? I forget) and Zune, there is now room for computer-like devices everywhere. Room for Microsoft everywhere, yay! And if somebody else is in my living room, in my pocket, MS sees that as a lost opportunity I guess?

    I don't know what's confusing about this, they say right in the article this is a "perfect complement to [their] existing software and services"... Clear as day! haha

    To be serious for a minute: Probably what it is is they want Danger's contracts, and they don't want another company's platform to get too popular. MS SOP. Who needs a plan, if you own the competition (however tenuous that connection may be), they cease to be a problem.

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