Microsoft Buys Mobile Smartphone Company

Microsoft is paying $500 million to purchase Danger Inc., a mobile software company for smartphones. The deal could be a very smart move for the tech giant.

The Windows Mobile operating system by Microsoft is aimed at powering smartphones for business and enterprise users but it’s only 21 percent of the market.

Danger’s mobile operating system, which currently incorporates Java software by Sun Microsystems, is best known for creating a raised platform that powers smartphones. The company has mastered the mobile operating system simplicity. Microsoft’s mobile divisions can benefit with this technology to keep up with Symbian, Linux and Apple in the smartphone race.

Danger earned $50.6 million last year, mostly from its T-Mobile relationship. The mobile software company has invested 10 years in consumer services and is known for its platform that attracts young audiences.

Analysts see the acquisition as a tool to assist Microsoft in its destiny as consumers move toward smartphone technology that will allow them to perform common online activities without their PCs.