Microsoft closes Danger deal

Microsoft has wrapped up its acquisition of smartphone maker Danger, setting the stage for a boost to its consumer mobile business.

T-Mobile Sidekick Slide

(Credit: Corinne Schulze/CNET News.com)

Danger will be housed within Microsoft's newly created Premium Mobile Experiences team, which is part of the software giant's Entertainment and Devices Division's Mobile Communications Business, Microsoft said Tuesday.

"Combining Danger and Microsoft talents together in the Premium Mobile Experiences team is how we're going to deliver cool, new, fun mobile experiences to consumers," Roz Ho, corporate vice president of the Premium Mobile Experiences team, said in a statement.

Microsoft says it plans to use Danger's mobile Internet platform to connect users to their social networks and dish up other forms of rich content.

While that's the game plan Microsoft has in store for its mobile phone acquisition, the company faces several challenges with integrating the maker of the Sidekick device. Danger uses its own operating system, and its business model relied on generating revenue by grabbing a slice of monthly service fees from phone carriers, rather than selling software licenses.

Terms of the deal were not disclosed.