Microsoft Buys Stake in General Magic

General Magic Inc. shares almost tripled after Microsoft Corp. said it took a stake in the struggling software company to get rights to its voice-recognition technology. Redmond, Wash.-based Microsoft said it will pay Sunnyvale-based General Magic $6 million for the stake and the licensing rights, giving a much-needed vote of confidence to the once high-flying technology company that started by developing software “agents,” designed to let users of hand-held computers search computer networks for information and to automate tasks. Microsoft has made it a priority to develop computers that can understand the spoken word. General Magic is working on a system, code-named Serengeti, that will let users access voice mail, e-mail, digital address books and faxes using voice commands. General Magic shares rose $4.22 to close at $6.47 in Nasdaq trading.