Danger will become a part of the new Premium Mobile Experiences (PMX) team, a group within Microsoft's Mobile Communications Business.
The PMX team focuses on consumer-facing mobile projects and is led by Roz Ho, corporate vice president of premium mobile experiences at Microsoft.
Danger co-founders Matt Hershenson and Joe Britt will join the new organisation, reporting directly to Ho.
"Combining Danger's and Microsoft's talents in the Premium Mobile Experiences team will deliver cool, new, fun mobile experiences to consumers. We want people to smile every time they look at their phone," said Ho.
Danger's employees will continue to work from their current offices. Financial terms of the acquisition have not been disclosed.