WebFives was originally developed in 2004 as a site called Vizrea that allowed users to share mobile phone images. The site never caught on and was re-launched as an online video and photo sharing service.
Microsoft said it will close down the site and integrate the services into its own online media sharing services by the end of this year.
The swoop means that WebFives’ founder Mike Toutonghi joins his old firm. He was previously the senior engineer at Microsoft who developed the Media Center version of Windows.
WebFives had raised around $4m in funding, some of it provided by former Microsoft executives.
