According to a report from the Wall Street Journal, Nokia and Microsoft’s relationship had extended to talks of a merger between the two companies which have been ongoing into June but have now ended.
- Mobile Talk: Was a Microsoft buy-out of Nokia the plan all along?
- Microsoft buyout of Nokia possible and Elop is key, says analyst
The article claims that ‘people familiar with the matter’ have revealed that Nokia and Microsoft ‘recently held advanced talks’ regarding the latter buying up the former’s mobile device business. It’s suggested the two companies could not agree on a buyout price and there were concerns that Nokia has been unable to gain significant ground in the smartphone market.
Sources claim Nokia and Microsoft personnel had met in London for these discussions and were ‘close to an oral agreement’. The report implies that talks are now not likely to go any further.
Rumours that Microsoft was considering a Nokia buyout have been circulating for a long time now and our very own Richard Goodwin had some extensive conspiracy theories about Nokia chief Stephen Elop, a former Microsoft exec, being something of a Trojan horse. Both companies have consistently denied these claims and even now are refusing to comment on this latest news that talks were actually happening.
The news does cast a pretty glaring light on Nokia though. Microsoft is thought to be already in such a deep partnership with the company that it’s said to be sinking around $1 billion per year into the Finnish phone-maker as a champion of its Windows Phone platform.
If Microsoft is getting so concerned about Nokia’s position in the mobile space that it’s hesitant to buy it up what does that say about the future of the company?
by pbriden via Featured Articles
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