Apple Loses Out on R2 Purchase to Microsoft

Apple's reported attempt to buy R2 Studios seems to have failed and instead it's Microsoft that picked up the home automation and media gear company. The purchase will help Microsoft push its Xbox console as a complete home entertainment system.

Microsoft snaps up R2 Studios, Apple misses out

R2 Studios has apparently been developing technology for distributing and viewing digital media on televisions, according to the Wall Street Journal, and that's likely Microsoft's primary interest in the company. Microsoft already has streaming media deals in place with several companies such as Netflix, HBO and Comcast, and R2 Studios' technology could help position the Xbox for even more content agreements.

R2 Studios was founded in May 2011 by Blake Krikorian, who is also the man behind Sling Media and the Slingbox streaming media product line. Along with Apple and Microsoft, the company was also negotiating with Google.

Mr. Krikorian and his R2 team will be working for Microsoft as part of the deal. There isn't any word on how much Microsoft paid for the company.