is likely to be bought by Microsoft, according to Valleywag. Apparently, the company is in advanced discussions with Microsoft to acquire the lifecasting service for more than $50 million.
Microsoft is facing competition from other companies. But since Ustream is currently raising a very large initial round of VC financing, Microsoft has been helping them grab cheap pre-funding, which suggests it has a foot in the door.
Microsoft would use Ustream as a way to promote its Adobe Flash competitor, Silverlight.