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Borg Succeeded in Another Capture

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Microsoft

Microsoft to buy Groove Networks

Microsoft Corp. said it plans to acquire Groove Networks Inc., a Massachusetts company founded by Lotus Notes creator Ray Ozzie, who will join the Redmond company as chief technical officer.

The deal, announced this morning, adds to Microsoft's portfolio of software used by workers to collaborate remotely -- an area that Bill Gates this week called "one of the big frontiers" for potential growth of the company's Office product line. Groove, in which Microsoft had already been an investor, makes a program called Virtual Office that runs on Windows.

Ozzie, who founded Groove in 1997, will report directly to Gates in his new role, while continuing to work with the Groove development team, Microsoft said. In a news release, Gates called Ozzie and his team "true innovators."

Further details.

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