Microsoft has completed its $425 million acquisition of WebTV.

The Internet TV service provider will become a wholly-owned subsidiary of Microsoft, taking the firm into a pitch battle with Sun which last week announced plans to purchase Diba, a designer of hardware and software for set-top boxes and other 'information appliances'. Also, Oracle recently announced its purchase of Navio, a Netscape spin-off concentrating on making Web clients for such devices.

However, Microsoft may still have the best hand as it recently announced an alliance with streaming media specialist Progressive Networks and a $1 billion investment in cable company Comcast.

WebTV hopes to have 250,000 subscribers by the end of this year.

Copyright © 1995-2008 CNET Networks, Inc. All rights reserved
ZDNET is a registered service mark of CNET Networks, Inc. ZDNET Logo is a service mark of CNET Networks, Inc.