In late February, TechCrunch reported on rumors of Xobni’s potential acquisition by Microsoft. Today, TechCrunch writes that Xobni had indeed been in negotiations with Microsoft and had proceeded to sign a letter of intent. However, Xobni has apparently walked away from the $20 million dollar deal, apparently over concerns of its future after the acquisition concluded: “But the deeper Xobni got into the discussions, the less comfortable it felt about its eventual fate inside the Microsoft machine.”

Matt Brezina, PSU alum and recently the Spring 2008 Bishoff Entrepreneur in Residence at Penn State, and his team have built an impressive venture. It’s great to see the value that they’ve built thus far - this is likely just the start of the recognition of their potential.