Wow-  This should lead to some interesting new developments.  Hopefully they allow Danger to continue to create the Sidekick Phones that we love so much! 

From the article: ”

Microsoft took another step Monday toward its goal of developing a mobile device that can handle everything consumers need - whether they’re at work or play. The software behemoth bought Danger, a Palo Alto company best known for creating the technology behind T-Mobile’s chic Sidekick smart-phones.

The companies did not disclose financial terms of the deal, which comes just weeks after Danger filed plans in December to go public.

“From the beginning we have talked about one phone for life,” said Scott Rockfeld, group product manager for Microsoft’s mobile communications business. “No longer do we have the Wild West of mobile phones,” where consumers have to carry a holster loaded with everything from a cell phone to a music player.

Danger is not a household name. But the Sidekick phone became a fashion phenomenon in recent years among “tween-agers” and 20-somethings after being spotted in the hands of celebrities such as Snoop Dogg and Paris Hilton. Sidekick sports a large screen that swivels into place, revealing a “QWERTY” style keyboard that makes it handy for instant messaging, text messaging and e-mail.

That made Sidekick a powerhouse among smart-phones, the fastest-growing segment of a cell-phone market that could top 1.1 billion in sales this year, analysts say. Sidekick accounted for the bulk of Danger’s $50.6 million in 2007 revenue.

Danger gets credit for the device’s simplicity. And that could make Danger a compelling addition for Microsoft, which has developed the Windows Mobile operating system that underlies many cell phones and mobile devices worldwide.”

Read more of it here.