Microsoft Buys SideKick Maker & Responds To Yahoo Snub

Redmond giant licks its wounds and prepares to enter the consumer handset market.

Bringing us some small relief from the mobile phone onslaught that is the Mobile World Congress is breaking news that Microsoft has made yet another purchase: Danger.

Yes, it’s a mobile phone maker… (I tried)

Danger, for those not in the know is the company which created the original T-Mobile Sidekick – that Tonka smartphone for young (apparently) hip American teenagers which has never really hit it off in the more sophisticated European market. The SideKick was originally known as the ‘Danger Hiptop’ and while hardware design has since massed to Motorola (with limited success) Danger is still at the heart of its mobile software.

Sadly, Microsoft has chosen not to disclose the amount it paid for Danger – in keeping with its recent deals it should be vastly inflated – but the move does plug one gaping hole in its mobile offerings: mass market consumers. Whether it leads to the first Microsoft mobile phone on the other hand is still anyone’s guess…

In related news Microsoft has given a formal (and somewhat bitchy) response to Yahoo’s decision to reject its $44.6bn takeover bid. It’s rather wordy so with this in mind I’ll sign off now, but the entire response is below. I suspect we’ll see a renewed bid, though with chitter chatter that Yahoo secretly covets an unholy union with AOL abound it remains to be seen whether Microsoft gets its way on this one…

“”It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.””

Microsoft’s Danger Announcement
Microsoft’s Yahoo Statement

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