Microsoft grabs Danger

February 11th, 2008 | Category: Microsoft (MSFT)

Visit a college campus and it’s obvious that the MySpace generation can’t habitable without mobile devices. And, of course, they want smart devices that are sleek and cool.

No doubt, that is a big opportunity for Microsoft (NASDAQ: MSFT), which needs to find new markets for its software.

So, nowadays the company announced it is purchasing Danger, which has a platform that helps to deliver mobile applications.

The company focuses primarily on the T-Mobile Sidekick family. Some of the capabilities include: IM, real-time mail, HTML browsing and social networking. There are about 923,000 subscribers and

revenues hit $56.4 million final year.

A big problem: by 90% of revenues come from T-Mobile. That’s certainly a risky proposition.

Interestingly adequate, Danger recently filed for a public offering. But in light of the recent market turbulence, a deal with Microsoft certainly seems less dangerous for shareholders.

Tom Taulli is the author of various books, including The total M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He additionally operates DealProfiles.com.