Microsoft announced its acquisition of WebFives, the mobile social networking site started by ex-Microsoftie Mike Toutonghi.

An excerpt from LiveSide:

The company started business in 2004 as Vizrea, but pulled back last year and re-emerged as WebFives, focusing on mobile content upload and sharing. In a letter to users sent out Nov. 30, Toutonghi made the announcement, and hinted that some of the technology behind the company would be headed into Windows Live.

The buy was reported as a technology acquisition, meaning that the technology behind the site will be incorporated into Microsoft’s products, such as Live services and MSN spaces. The WebFives service will stop at the end of this year.