The shopping spree continues: Microsoft (NSDQ: MSFT), in the middle of a bid to acquire Yahoo (NSDQ: YHOO), has announced that it will acquire Danger Inc., the company behind the Sidekick mobile device. The Palo Alto-based mobile software company filed in December to raise up to $100 million in an IPO. But the company has been losing money and its fortunes are tightly tied to the success of the SideKick and its agreement with T-Mobile. The firm will become part of Microsoft’s Entertainment & Devices division.  Terms of the deal were not disclosed. Release.

Danger has raised about $142 million in total VC funding since 2000, including a Series E round in late 2006 at a post-money valuation of approximately $187 million, reports PEHub. Shareholders include Mobius Venture Capital (17.6%), Redpoint Ventures (14.8%), T-Mobile (12.6%), Softbank Capital (12.7%), Motorola (NYSE: MOT) (11.2%), Meritech Capital Partners (7.8%) and VSP Capital (6.2%).

Tricia adds: The buyout for Microsoft is important because the company has yet to create a very easy-to-use user interface or a great consumer experience despite its successes of selling Windows Mobile devices into the enterprise. Also, it’s worth noting that Microsoft and Google (NSDQ: GOOG) now have something in common. In order to kick-off its mobile operating system, Google purchased Android, a company co-founded by Andy Rubin, who previously started Danger. 

• Danger Files For $100 Million IPO; $56.4 Million In ‘07 Revenue; To Trade Under ‘DNGR’