Microsoft Acquires Sidekick Manufacturer, Danger Inc. For $500 Million

Posted Feb 12, 2008

In the midst of making an offer to Yahoo! for $44.6 billion, Microsoft also announced yesterday that they acquired Danger Inc.  GigaOM reported that the acquisition price was $500 million.  Coincidentally, Danger Inc. was co-founded by Andy Rubin.  Rubin was ousted as CEO of Danger, so he started Android Inc. which was acquired by Google.  Through the acquisition of Android, Rubin became Director of Mobile Platforms at Google.  And Google announced plans for launching Google Android for free to many phone manufacturers. 

Google Android is a Linux-based open source operating system. 

Microsoft’s acquisition of Danger Inc. symbolizes the potential strategies they have for seizing market-share in the telecommunications industry.  Windows Mobile operating systems are the standard in many Smart Phones now, but that’s clearly not enough for the software giant.  Danger Inc. innovated and manufactures the Sidekick.  Having this phone became viral quickly and was distributed through T-Mobile.

“Microsoft is a global leader with our Windows Mobile software and expanding mobile services,” stated Robbie Bach, President of the Entertainment/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.”

Danger Inc. previously raised roughly $225 million (45% of their acquisition price).