On Monday, Microsoft announced it has agreed to acquire Danger, whose software powers the popular Sidekick and Hiphop devices.

Terms of the deal were not disclosed. But Danger earned $50.6 million in 2007, most of it from its T-Mobile relationship.

Danger has invested 10 years in consumer mobile services and is known for its software platform that attracts young, hip audiences. Microsoft hopes to tap that experience to deliver “innovative and compelling” mobile experiences.

“Microsoft is a global leader with our Windows Mobile software and expanding mobile services,” said Robbie Bach, president of the Entertainment and Devices Division at Microsoft. “The addition of Danger serves as a perfect complement to our existing software and services, and plus strengthens our dedication to improving mobile experiences centered around individuals and what they like.”

Danger’s Strengths

Microsoft said the acquisition will accelerate its entrance into the consumer mobile space and complement its focus on entertainment and knowledge.

Applications on Danger-powered handsets

include Web browsing, instant messaging, games, multimedia, social networking, Web e-mail and personal knowledge management.

Microsoft is convinced that combining these services with its technologies like MSN, Xbox, Zune, Windows Live and Windows Mobile will position Redmond to become a contender in the consumer mobile entertainment space.

What About Windows Mobile?

Microsoft software can be found on more than 160 mobile phones made by more than 50 hardware partners and offered through more than 160 mobile operators around the world. Microsoft expects to nearly double sales of its Windows Mobile licenses that year. That would bring the total to more than 20 million.

Danger has nothing to do with the Windows Mobile platform. So the acquisition begs the question: What will Microsoft do with that technology?

“Danger has a strong consumer following. It’s not about Windows, per se, and it’s not a business device,” said Michael Gartenberg, an analyst at JupiterResearch. “Microsoft…

Orginal post by Top Tech News