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

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?