Microsoft buys Danger, maker of the Sidekick

Microsoft may have missed out on Yahoo, but that is hardly the only company it’s after. Today, in a bid to gain some traction in the consumer-focused mobile phone market, the software giant announced that it’s acquiring Danger, the company best known for developing the technology behind T-Mobile’s Sidekick phones.

To date, with Windows Mobile, Microsoft has focused almost exclusively on business customers. But the deal would allow Microsoft to rely on Danger’s 10-years of experience in the consumer market to counter Apple’s surge in the marketplace. Both parties, however, have a completely different way of doing business. While Danger gets its money primarily by getting a cut of the monthly service for its phones, Microsoft gets its money by licensing the operating system to phone makers.

Microsoft General Manager Scott Horn said the company isn’t ready to announce its specific plans for Danger, but said the company plans to continue operating its existing Sidekick business.