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Microsoft beats Apple, Google to acquire media startup - Report

January 3, 2013 6:18AM PST
By Eddie Makuch, News Editor

Redmond technology giant buys Blake Krikorian's id8 Group R2 Studios Inc. and its patents for controlling electronic devices to bolster Xbox platform.

Microsoft has agreed to acquire a home entertainment startup--id8 Group R2 Studios Inc.--in an effort to bolster its Xbox unit, sources have told The Wall Street Journal.

 

The company was formed by entrepreneur Blake Krikorian, who created the Sling Box technology alongside his brother, Jason.

Blake Krikorian will join Microsoft with a "small team" of developers. Microsoft's acquisition of the company also includes some of the startup's patents, which are related to controlling electronic devices.

A price for the deal was not divulged. A Microsoft representative was not immediately available to comment on the reported acquisition and what it could entail for the future of the Xbox platform.

According to the report, R2 Studios has been developing technology related to "distributing and displaying digital media on TVs." What's more, Apple and Google were also reportedly interested in acquiring the company, but Microsoft ended up winning out.

Microsoft has rapidly expanded its Xbox platform from a game-specific system to a hub for on-demand, live, and streaming video content. Microsoft has recently partnered with the likes of HBO, Comcast, Netflix, and YouTube for streaming services through the Xbox platform.

Microsoft announced in March last year that gamers in the United States spend more time with Xbox Live entertainment applications than they do playing multiplayer games over the service.

By Eddie Makuch, News Editor

Eddie Makuch (Mack-ooh) is a News Editor at GameSpot. He works out of the company's Boston office in Somerville, Mass., and loves extra chunky peanut butter.