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.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: desperation, mergers
Companies: danger, microsoft
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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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Re: 4-80-sicks
They don't want Danger to be too popular? Hah! There are plenty of competitors in the mobile space that are vastly more popular than Danger. This is like McDonalds buying up a 3-store franchise in order to prevent Burger King from taking over the fast food world.
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Re: Re: 4-80-sicks
I think you did not understand what I meant. It's about taking over the entire market at this point (maybe never again), it's about just having a hand in. Dominance is the preferred position, of course, but even giants have to start with baby steps when entering new spaces. No conspiracy theory here.
Why they chose Danger in particular, well OK, I can't say for sure, because--surprise, surprise--I don't work for Microsoft. Maybe you can come up with a better idea as to the reason? Or do you just like to shit-talk? I would only develop what I already wrote: the Sidekick is a very high-profile, popular model phone, which happens to not run Windows Mobile. How many other smart phones make that claim, besides the iPhone? Not very many, right? You see Microsoft appreciating that being out there? I don't. That's not a conspiracy, that's history repeating itself, not to mention the way business often works.
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Re: Re: 4-80-sicks
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Does Microsoft not have a VP of Obvious Joke Contr
Microsoft + Danger = Exploding Cellphone in your pants.
Helllooooo, Is this thing on? Tap Tap Tap.
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Re: Does Microsoft not have a VP of Obvious Joke C
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Re: Re: Does Microsoft not have a VP of Obvious Jo
Well...duuhhh. This IS Seattle. They don't turn the sun back on until May!
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Microsoft needs a successful mobile gaming platfor
The question is: Is Danger cable of being the catalyst for this drive?
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Re: Microsoft needs a successful mobile gaming pla
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This really does make sense.
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Keeping up with Google
What is surprising is that a lot of the value in this purchase is the Sidekick brand, but MS already has a mobile brand in the Zune if all it wants to do is match Apple. Don't be surprised to see a new phone released as the Zune Sidekick, or some mashup like that.
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Re: Keeping up with Google
Looks like Google is going to give away $10M bounty for the best applications also. Guess it's time to dust off the ABAP programming book...
http://www.youtube.com/watch?v=_avwGFsv60U
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> (and it also might lead Sidekick fans to flee to other devices).
No way! Gods, please please please pull out that piece of crap and give me some kind of REAL OS that will at least let me install MY apps!!!
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HMMMM gives me an idea
I am planning on IPO'ing myself. You can buy me for 44 billion dollars at any time.
Thanks
BillGod
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Shoulda bought Palm instead ,er, first.
Instead, MS will try to cram WinCE into the Hiptop and re-brand it as a Zunephone. Current Hiptop owners will switch to iPhone because they won't want to be mistaken for un-hip Zunephone-using rednecks.
Zunephone sales will hover near zero because consumers will not want to figure out how to use WinCE and styli and all that. Zunephone will join its DOA sibling, the Zune, and MS will need to buy another sickly techno-weakling company to make it seem like they're doing something, ANYTHING, in addition to milking Windows and Office (money makers) and shilling Xbox (money loser.) Hmmm. How about Yahoo?
Hey Ballmer: why has Microsoft stock dropped more than 40% since you took over from Bill? Better get Big Ass Table (aka Surface) out the door soon. Real cash cow for sure.
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go for it
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