Microsoft Will Buy Maker of Sidekick

Microsoft is poised to buy Danger, the maker of the T-Mobile Sidekick, in a move that follows on the heels of Yahoo's rebuff of the software behemoth's $44 billion buyout offer. Microsoft hasn't said how much it's forking over, but called Danger the "perfect complement to our existing software and services," CNET reports. Danger's founder now runs the Android mobile project for Microsoft competitor Google.

The deal "strengthens our dedication to improving mobile experiences centered around individuals and what they like," Microsoft said. One foreseeable roadblock is that Danger has its own operating system, competing with Windows Mobile. Danger also generates revenue with monthly service fees, whereas Microsoft licenses its OS out to phone makers. But Microsoft remains confident it will find its new partner compatible on both business and software fronts. (More Microsoft stories.)