Microsoft beats Apple, Google to acquire media startup - Report

Microsoft has agreed to acquire a home entertainment startup--id8 Group R2 Studios Inc.--in an effort to bolster its Xbox unit, sources have told The Wall Street Journal.

The company was formed by entrepreneur Blake Krikorian, who created the Sling Box technology alongside his brother, Jason.

Blake Krikorian will join Microsoft with a "small team" of developers. Microsoft's acquisition of the company also includes some of the startup's patents, which are related to controlling electronic devices.

A price for the deal was not divulged and a Microsoft representative told GameSpot, “We do not comment on rumors or speculation."

According to the report, R2 Studios has been developing technology related to "distributing and displaying digital media on TVs." What's more, Apple and Google were also reportedly interested in acquiring the company, but Microsoft ended up winning out.

Microsoft has rapidly expanded its Xbox platform from a game-specific system to a hub for on-demand, live, and streaming video content. Microsoft has recently partnered with the likes of HBO, Comcast, Netflix, and YouTube for streaming services through the Xbox platform.

Microsoft announced in March last year that gamers in the United States spend more time with Xbox Live entertainment applications than they do playing multiplayer games over the service.