Microsoft Acquires Sidekick-Maker Danger Inc.

The Palo Alto, Calif.-based company started by Andy Rubin, now leading the Android development over at Google, had planned for an initial public offering but the recent downturn in financial markets might have prompted their decision to sell out to Microsoft.

“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.”

Microsoft said the acquisition will align Danger's expertise in the mobile- consumer sector with its focus on expanding its mobile offerings.

Terms were not disclosed, but the mobile platform company will be rolled into the Windows mobile team and be part of the overall Entertainment and Devices division that includes the XBox, and the Zune.

“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,” said Robbie Bach, president of the Entertainment and Devices Division at Microsoft.