Back on Monday, Microsoft announced that it would acquire Danger Inc., the company behind the mobile operating system that powers the Hiptop (also known as the T-Mobile Sidekick). 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. Danger will be rolled up into Microsoft’s Entertainment and Services Division which is already responsible for the Xbox 360 console and Zune media players.
Terms of the acquisition were not disclosed but one rumour pegs the sale at about USD$500 million.
The move could help Microsoft move further into the consumer end of the smartphone market. For example, Microsoft could add some phone capabilities to the Zune by using the Danger platform. Could we see a completely new smartphone device not running Windows Mobile marketed at consumers? Or will Microsoft roll up some of the functionality into Windows Mobile? Or will we see a Sidekick running Windows Mobile? The possibilities are endless.