It's official: Microsoft to acquire FireFly

Representatives from Microsoft Corporation and FireFly Network Inc. confirmed on Thursday that the Redmond software giant would be purchasingthe small Internet startup. Microsoft says that it pursued FireFly to gainaccess to its Internet personalization software and assume FireFly's roleas an advocate of Internet privacy.

"I think for a period of time, [FireFly's personalization software] will bea differentiator. But that is not a long-term goal," said Ed Graczyk, leadproduct manager for the Web Essentials Group at Microsoft. "The goal is tomake [FireFly's privacy standards efforts] as broadly available as possible."

Though no one is releasing a firm figure, reports are that Microsoft paid$40 million for FireFly, and it will hire FireFly's management team andmuch of its other employees.

"It was just an opportunity that we could not refuse," said Firefly founderand CEO Nicholas Grouf