Microsoft corners Musiwave for possible acquisition

Microsoft Inc. announced it has acquired the right to buy Musiwave SA from Openwave Systems Inc., which has struggled with management changes in light of stock-option backdating woes and proxy battles with shareholders. No terms of the proposed deal were disclosed.
The acquisition of Musiwave would bring to Microsoft a company with existing relationships with music labels, device makers and mobile operators, complementing Microsoft’s Connected Entertainment offerings, Microsoft said. Musiwave powers mobile music services for Vodafone Group plc, T-Mobile International, Telefonica S.A., Orange and Telus Corp. Microsoft’s Windows Mobile OS runs on more than 140 handsets worldwide and is a challenger to the dominant Symbian OS found on Nokia Corp.’s advanced phones.
Musiwave is headquartered in Paris and would continue to operate there after the acquisition. Openwave purchased Musiwave in 2005 for $120 million.
Integrating Musiwave’s offerings into Microsoft’s own services would “showcase the power of software and services,” said Pietr Knook, senior VP of Microsoft’s mobile communications business.
Today’s announcement appeared to reflect Microsoft’s interest in the European market, where it has been battered by regulators. Musiwave is based there and Microsoft noted that Musiwave software runs on “most” handsets available in Europe.
Microsoft’s plans for Musiwave highlight the quickening pace of convergence, as computing companies go mobile. Indeed, this year Apple Inc. splashed down in the midst of the mobile market and today Google and its partners issued a software development kit for their Android operating system efforts-with a $10 million sweetener to attract developers.
Google’s time-honored method of attracting developers worldwide to its new Android platform is a contest dubbed the Android Developer Challenge, in which a panel of judges will award cash prizes from $25,000 to $275,000 for applications submitted between January and March 2008. The cash may help spur innovation in a tight calendar-Android-powered handsets are due on the market in the second half of 2008.