Microsoft acquires Groove Networks

Via John Robb, I see Microsoft acquired the remaining piece of Groove Networks (Microsoft was already a large shareholder). A couple years ago (two years ago tomorrow, actually), I wrote about Groove and its growing homeland security business, its relationship with Microsoft and the possible reasons for Groove board member Mitch Kapor leaving the board. (Disclosure: Socialtext and Groove are both collaboration software companies, though we offer vastly different services and are by no means direct competitors.)

At the time:

Groove has raised a bubble-like total of $155m in venture capital in just over five years. … [W]hat are the implications of Microsoft being among the largest shareholders in a company that is providing domestic surveillance software to the Pentagon? And who raises this kind of bubble money in today’s economy?

Food for thought.

Congrats to the Ray and the team at Groove; this is exciting news for the industry, a sign that the market is still largely untapped for group collaboration.