Software giant to acquire mobile music service provider

Microsoft has formally declared an interest in acquiring Musiwave in a bid to strengthen its position in the mobile music entertainment services space.

The acquisition will give Microsoft exclusive use of Musiwave's technology, which allows mobile operators to provide self-branded music applications, including full song-over-the-air downloads, ring-tones and ring-back tones.

Musiwave's customers include O2, Vodafone, T-Mobile, Orange, Telus, Telefónica and Virgin Mobile.

Microsoft explained that the acquisition will link Musiwave's relationships with labels, device makers and mobile operators to Microsoft's Connected Entertainment technologies and services, including Windows Mobile, Zune, MSN and Windows Live.

"Microsoft and Musiwave share the same philosophy in working with hardware and mobile operator partners," said Pieter Knook, senior vice president of the Mobile Communications Business at Microsoft.

Bringing Musiwave onboard will also provide an opportunity for Microsoft to explore previously untapped areas in the mobile space.