Report: Microsoft and Nokia talked acquisition

Recent discussions aimed at a deal aren't likely to be revived, a Wall Street Journal report said

Microsoft and cellphone maker Nokia were in advanced talks about an acquisition of the Finnish company's device business, but the discussions have broken down, according to a report in The Wall Street Journal.

Such a deal might have improved both companies' ability to compete in a world dominated by smartphones offered by Apple, which makes both hardware and software, and by Google, which relies largely on third parties for devices that run its Android OS.

But the talks, which took place as recently as this month, have faltered and aren't likely to be revived, The Wall Street Journal reported Wednesday. The discussions were held in London and the companies were close to an oral agreement about a combination, the report said.

The deal hit snags regarding price and the market position of Nokia, which trails far behind both Apple and Samsung, the Journal said.

Microsoft declined to comment on the report. Nokia could not immediately be reached for comment.

An acquisition of Nokia by Microsoft is an idea that has seen some discussion in recent years. Two years ago, the companies formed a partnership in which Nokia would use exclusively Microsoft software to power its smartphones.

One idea behind the partnership was that by adopting Microsoft's Windows Phone as its primary smartphone platform, Nokia could make a better product on par with smartphone hardware powered by Google's Android operating system. Other hardware makers, including HTC, also make Windows Phone handsets.

When Nokia announced last year that it would be cutting 10,000 jobs, industry speculation grew over whether the time was right for Microsoft to make a move.

Were Microsoft to buy Nokia's device business, it would help the software company better compete against Apple and also bolster the company's broader position in a diverse market, industry analyst Jeff Kagan said in an email message.

"This is the kind of deal I have been thinking about ever since Microsoft and Nokia got together on the Lumia wireless phones," he said. "This is the perfect time for Microsoft to extend beyond their traditional business, and acquiring Nokia could be their ticket to do just that."

Microsoft already makes its own Surface tablets, as well as the Xbox gaming and entertainment consoles.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags MicrosoftsmartphonesNokiaGoogleAppleoperating systemsiPhonesoftwareconsumer electronics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?