Microsoft buys Danger, T-Mobile gets FCC nod for SunCom

By Mickey Alam Khan

February 12, 2008

Microsoft intends to combine Danger's offerings with connected services such as MSN, Xbox, Zune, among others

Microsoft Corp. has agreed to buy Danger Inc., a software-as-a-service firm that lets wireless carriers deliver mobile data and Internet services to their subscribers.

The Danger deal is part of Redmond, WA-based Microsoft’s goal to strengthen its presence in mobile, particularly expanding its Windows Mobile suite of services. Terms of the deal were not disclosed.

Applications available on Danger-powered handsets include HTML Web browsing, instant messaging, social networking, Web email, personal information management programs, multimedia and games.

Microsoft intends to combine these offerings with connected services such as MSN, Xbox, Zune, Windows Live and Windows Mobile to help customers with entertainment and communications.

Separately, Microsoft neighbor wireless carrier T-Mobile USA Inc. has won approval from the Federal Communications Commission for the merger with SunCom Wireless Holdings Inc.

The transaction is expected to close by month’s end.

Announced Sept. 17, the merger deal entails the acquisition of all outstanding shares of SunCom common stock for approximately $2.4 billion in cash and assumed debt. This includes $1.8 billion in cash and 800 million in debt.

Based in Bellevue, WA, T-Mobile USA is a wholly owned subsidiary of Deutsche Telekom AG. The purchase of SunCom brings with it 1 million wireless subscribers in the southeastern United States, Puerto Rico and the U.S. Virgin Islands.