NewShinyCD writes "Sources tell Valleywag that startup Ustream.tv is in advanced discussions with Microsoft to acquire the lifecasting service for more than $50 million, but there are other companies in the bidding as well. Ustream is currently raising a very large initial round of VC financing, and Microsoft is attempting to grab them prefunding for a cheap price. Our tipster also mentions that Microsoft would use Ustream as a way to promote its Adobe Flash competitor, Silverlight." Relatedly, Microsoft has also announced their intent to buy Sidekick maker Danger. Financial details of the Danger buyout were not disclosed.