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Microsoft Reportedly Looking to Buy Nokia's Phone Business

An unconfirmed report now suggests that Microsoft and Nokia could be in the final phases of integrating the struggling handset maker into Microsoft.

According to a tweet by Eldar Murtazin of Mobile Review, Microsoft and Nokia executives will meet in Las Vegas during CES to discuss the terms of the sale as well as "one or two" manufacturing facilities. Part of the deal is apparently Microsoft's intent to drop the Nokia brand and convince Nokia CEO Stephen Elop, a former Microsoft executive, to resign. A juicy component of the potential acquisition may be Nokia's patent portfolio rather than a pure Microsoft interest in becoming a leading cell phone manufacturer.

Of course, there is no confirmation from Nokia or Microsoft, but it is reasonable to assume that Microsoft has been playing with the idea of buying the phone maker to at least jumpstart its Windows Phone platform, which isn't doing so well either. Controlling both the software and hardware development has been critical to Apple's success; Google is following with the acquisition of Motorola; and Nokia as part of Microsoft could be a logical move. Stephen Elop may forever be branded as the spy that Microsoft placed within Nokia to facilitate a takeover of the company.

We expect Microsoft and Nokia to become a much more integrated business, no matter whether Nokia is acquired or not. A few weeks ago, there were rumors that Microsoft and Nokia could be launching a joint bid to acquire Blackberry maker RIM, which also indicated that the companies were in it together.

  • shine8210
    Microkia or Nokisoft? Hmmmmmm........
    Reply
  • chumly
    Neither one of these companies makes any hardware that I would want, and being in bed with each other isn't going to help that.
    Reply
  • love the move plus adding rimm in the mix make microsoft pretty dang powerful from a patent perspective too,have been saying this for a while already microsoft,nokia plus rimm and w8 integration
    Reply
  • phamhlam
    MSFT makes is own successful game console, why not cellphone. It would also give MSFT more access to all of Nokia patent.
    Reply
  • mrmaia
    I've used only Nokia phones for 10 years and I love their products. If Nokia is to be swallowed my Microsoft, I hope they at least keep their good standards.

    Au revoir Nokia!
    Reply
  • lathe26
    I'll believe this rumor when I see it happen. This rumor has been around since Nokia announced the switch to WP7.

    If it happens, it will be a well orchestrated takeover. However companies will be very reluctant to hire ex-Microsoft VPs in the future out of fear of being gutted.
    Reply
  • rjandric
    ..And they will releasee Microphone v.10 next year
    Reply
  • freggo
    Dropping the Nokia name; could than mean Microsoft will than offer the re-branded mPhone with Win 8, or maybe wPhone :-)

    I am sure Apple is watching the proceedings closely !

    Reply
  • njt
    obviously the real value behind this acquisition really are the patents, not the business. then when they fail, again, with the next version of the windows phone platform, they can fold the business and "innovate by suing". it would certainly make them more money than they're making now out of the partnership. what really bothers me though is not knowing for sure whether elop ever truly believed that windows phone would present them with a viable business model or whether it was all just a pre-acquisition scheme (to further de-value nokia stock?). could they have really been that naive? ironically, some late nokia models like the lumia, are handsome devices, i would have bought one if it had run android.
    Reply
  • freggo
    chumlyNeither one of these companies makes any hardware that I would want, and being in bed with each other isn't going to help that.
    The basic Micro$oft Mouse is actually not all bad.

    Reply