I made a few comments about MS building aggregation into Outlook here - I said that it looked like pain for Newsgator. I still think that's the case; MS has a long track record of spencing whatever time and money is necessary to dominate a space.
However, I think Scoble's got a point here - why should MS bother building their own Outlook integration when it already exists, ripe for the picking? You think the VC's backing Newsgator wouldn't take an offer in a heartbeat?
So the question for me is, has MS talked to them and - for technical or business reasons decided not to buy them? Or is this a huge NIH problem?