Rumor: Microsoft to buy Nokia's phone division

When Microsoft teamed up with Nokia to create WP7 hardware, it showed a massive shift in strategy for Nokia. But if rumors hold true, then this may only be the start of a massive acquisition of the.

The information comes from Russian blogger, Eldar Murtazin, who has been known for his insider knowledge at Nokia. While this rumor is massive and far reaching, Murtazin has been saying this would happen for several weeks now on his Twitter account. But now, taking it a step further, he stated the following (via PhoneArena):

People live in the old and do not understand how the information that such media. And lose again and again. But my problem is just doing their job. Given the degree of insanity in the Nokia, it becomes easy to do. And there you have another piece of information – the following week Nokia begins talks on selling the phone division at Microsoft. While the results of these negotiations will not be public, but the deal could be closed before the end of 2011, both companies are very much in a hurry. After all, today the problem for the current management of Nokia does not produce good products, but as soon as possible to destroy the company, and interesting assets transferred to the MS. Everything is transparent and takes place in public.

Murtazin has a favorable track record when it comes to Nokia information but Microsoft has denied that it has intentions of acquiring Nokia. If Microsoft were to purchase Nokia's mobile division, it would be a massive acquisition requiring billions in capital. Also, if Microsoft were to get into the game of creating its own WP7 hardware, it could become a conflict of interests with the current third party WP7 suppliers.

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Also, if Microsoft were to get into the game of creating its own WP7 hardware, it could become a conflict of interests with the current third party WP7 suppliers.

No it wouldn't. Microsoft license the use of Windows Phone 7 OS. Theer is nothing that says they couldn't make their own branded phone. Thats like saying, bec Microsoft makes Windows and sells it, they can't also make their own PC with Windows. They can. It wouldn't really be competeing as Microsft could easily limited how many PC's they would make and in what class.

They would be competeting to sell hardware. The only difference is Microsoft wouldn't have to pay for its own licenses of course which means they could sell a handset a lil cheaper. But then the other phone makers could just match the cost.

There is no conflict of interest.

Taxwise, might be a good deal for MSFT. They probably have a huge balance on offshore bank. By buying a foreign company, they don't have to move the money back to states, therefore, to avoid potential billions of tax.

Nokia's phone division? Doesn't Nokia make cell phone's only? It has no other division. It mean Microsoft is buying Nokia?!

Mazhar said,
Nokia's phone division? Doesn't Nokia make cell phone's only? It has no other division. It mean Microsoft is buying Nokia?!

no, but that's all consumers know them for, they also make big phone centrals and mobile centrals and stuff. They used to do a lot of other stuff to, from monitors to tires, but these have been sold of before.

The difference between microsoft and google is that every single company that google acquire is for a good reason. They bought youtube and you see how much its integrated with their search. Why would microsoft buy nokia? Skype is reasonable but come on ...

S3P€hR said,
The difference between microsoft and google is that every single company that google acquire is for a good reason. They bought youtube and you see how much its integrated with their search. Why would microsoft buy nokia? Skype is reasonable but come on ...

funnily, youtube seems to be better integrated into bing search than Google search, so no, not really.

I'm no WP7 fan but I would actually consider getting one if WP7 went Nokia only. Yes it would mean that Microsoft is pulling an Apple, but that's not necessarily a bad thing, as Apple has been quite successful thus far.

This makes almost no sense.

For one, it would absolutely ruin Microsoft's relationship with other mobile hardware manufacturers. Maybe Microsoft is fine in going the Apple route and making its own hardware, but that really doesn't make much sense given the company's history. Yes, it makes entertainment devices (like the Xbox and Zune) and accessories, but it's never tried to be a dual hardware and software manufacturer for its own operating systems.

I just don't understand it. It's a major gamble, and one that could very well blow up in its face (or at least significantly reducing the importance of Nokia, like what happened with Danger, but on a much larger scale). I don't put any stock in this rumor.

Ayepecks said,
This makes almost no sense.

For one, it would absolutely ruin Microsoft's relationship with other mobile hardware manufacturers. Maybe Microsoft is fine in going the Apple route and making its own hardware, but that really doesn't make much sense given the company's history. Yes, it makes entertainment devices (like the Xbox and Zune) and accessories, but it's never tried to be a dual hardware and software manufacturer for its own operating systems.

I just don't understand it. It's a major gamble, and one that could very well blow up in its face (or at least significantly reducing the importance of Nokia, like what happened with Danger, but on a much larger scale). I don't put any stock in this rumor.

They will buy Nokia's divison, not just the brand but all the Nokia devs. Understand now?

Anyone remember Google releasing Nexus? It didn't alienate the other OEMs. As long as the move strengthens WP7s position, there is no reason why other OEMs will avoid WP7 as long as it's still being licensed. Remember that they are here to make money as well. They don't have loyalty to any OS and will go where the market is.

digger1985 said,
Anyone remember Google releasing Nexus? It didn't alienate the other OEMs. As long as the move strengthens WP7s position, there is no reason why other OEMs will avoid WP7 as long as it's still being licensed. Remember that they are here to make money as well. They don't have loyalty to any OS and will go where the market is.

That was one phone (well, now it's two), not an entire mobile division of phones meant to compete with your partners. If Microsoft was just going to make one or two phones, it certainly wouldn't spend billions on Nokia.

Also: that was to test a new channel for selling phones without a contract/carrier. I still don't think it was a good idea, and that was pretty much proven. The Current Samsung Nexus phone is simply a partnership between Nokia and Google -- it's really nothing like the original that was made by HTC. It's more like the Droid partnerships Google does, actually.

thealexweb said,
This would alienate HTC, Samsung and LG even more, there already not happy at all by this alliance.

If it helps the WP7 market then I don't see why they would not be happy. It's not like MS is going to suddenly pull an Apple and stop licensing WP7 to other manufacturers.

For example MS makes Office for Macs and Bing/Photosynth for iOS etc. Just because they are competitors doesn't mean you have to avoid them.

thealexweb said,
This would alienate HTC, Samsung and LG even more, there already not happy at all by this alliance.
If it did happen, MS would definitely end their licensing program with them. WP7/8 would be Nokia only sooner or later.

MS Lose32 said,
If it did happen, MS would definitely end their licensing program with them. WP7/8 would be Nokia only sooner or later.

Yes and pretty soon MS will stop making Office for Macs. *roll eyes*

MS Lose32 said,
If it did happen, MS would definitely end their licensing program with them. WP7/8 would be Nokia only sooner or later.

And judgment day is on May 21, 2011

digger1985 said,

If it helps the WP7 market then I don't see why they would not be happy. It's not like MS is going to suddenly pull an Apple and stop licensing WP7 to other manufacturers.

For example MS makes Office for Macs and Bing/Photosynth for iOS etc. Just because they are competitors doesn't mean you have to avoid them.

If you were a manufacturer, would you spend your time and resources customizing Android (for the good or bad), or putting stock WP7 on your phones. In other words, if you could go with an OS that you could differentiate from the competition, would do use it? Or would you go with an OS that looks the same on every phone, INCLUDING your competitors?

MS Lose32 said,
If you were a manufacturer, would you spend your time and resources customizing Android (for the good or bad), or putting stock WP7 on your phones. In other words, if you could go with an OS that you could differentiate from the competition, would do use it? Or would you go with an OS that looks the same on every phone, INCLUDING your competitors?

All I am saying is that OEMs will go where the money is. When Google released their own phone, there was no backlash. Instead the Android market grew and hence they stayed on the bandwagon. If the Nokia move means that WP7 market explodes, other OEMs would be fools not to offer WP7 handsets.

As for customisation.
1) #1 complaint of Android users is the skins from the OEMs. Having a stock WP7 UI would actually be an ADVANTAGE.
2) There are a lot of people would buy a WP7 device but not from Nokia. For example many users love the hardware from HTC or Samsung and if WP7 market grows due to the MS/Nokia move, then HTC and Samsungs market grows as well.

digger1985 said,

As for customisation.
1) #1 complaint of Android users is the skins from the OEMs. Having a stock WP7 UI would actually be an ADVANTAGE.
2) There are a lot of people would buy a WP7 device but not from Nokia. For example many users love the hardware from HTC or Samsung and if WP7 market grows due to the MS/Nokia move, then HTC and Samsungs market grows as well.
You are failing to see that while the user may not like Android's custom skins, the manufacturers do like them, because if they didn't, why would they waste money making them in the first place. Again, if you were a manufacturer, would you spend your resources customizing something that is customizable, or slapping a uniform looking OS on your phones while at the same time, another manufacturer has special rights to customize it (Nokia)? I'm not saying other manufacturers won't make any money from WP7 but over time, I'd imagine they would think the whole situation is a bit unfair.

digger1985 said,

All I am saying is that OEMs will go where the money is. When Google released their own phone, there was no backlash. Instead the Android market grew and hence they stayed on the bandwagon. If the Nokia move means that WP7 market explodes, other OEMs would be fools not to offer WP7 handsets.

As for customisation.
1) #1 complaint of Android users is the skins from the OEMs. Having a stock WP7 UI would actually be an ADVANTAGE.
2) There are a lot of people would buy a WP7 device but not from Nokia. For example many users love the hardware from HTC or Samsung and if WP7 market grows due to the MS/Nokia move, then HTC and Samsungs market grows as well.


haha, nokia hardware is almost ALWAYS superior to its competitors, it was its software they seriously sucked balls at. Which with WP7 is not the case anymore. Eat sh*t crappy HTC/Samsungs that break when they fall once!!!! my 6-7 year nokia FTW, still works like a charm (just battery is slowly getting worse). Cant believe it took so much damage, drowned and what not... and all i'm missing is the options button

didnt want a "smartphone" untill i heard Nokia is making WP7 phones.... i had an HTC and some other smartphone before, they sucked ass... its a PHONE mainly, it should be able to take some damage. and not break because you press to hard or drop it on the ground

thealexweb said,
This would alienate HTC, Samsung and LG even more, there already not happy at all by this alliance.
I'm afraid Samsung already alienated Microsoft. And I can see a world where Microsoft is content producing a Windows 7 phone, and keeping HTC and LG around as OEM's, so anyone who doesn't like the MS style has alternatives, unlike Apple where you either love the single-button interface or hate it.

MS Lose32 said,
If it did happen, MS would definitely end their licensing program with them. WP7/8 would be Nokia only sooner or later.

I don't think so. It's not Microsoft's style... The other OEM's may shy away from it more, as Microsoft would all of a sudden go from a partner to a competitor, but Microsoft would continue to license WP7 absolutely...

After reading this article (and not doing any further research), I personally think this wont happen; after MS bought Skype for far more than it is worth, do they really need to spend more on a company which is not only partially failing in many markets, but a company they already have a questionably strong partnership with.

My first thoughts were; "that is just ridiculous," but that was my initial thought on the Skype acquisition, and look what happened there.

I guess it'll be a good thing for MS if it were to go ahead.

Why would they want to?
They already have a pretty good deal with Nokia.
From a business perspective, i'm sure both companies will be waiting to see how that move pans out before taking any other steps.

I really, really, hope that they do. Spend, spend, spend to get yourself into something that is not successful. Love it. They are spending money on Bing and it's not paying off. Do it with Windows Phone 7 now.

UndergroundWire said,
I really, really, hope that they do. Spend, spend, spend to get yourself into something that is not successful. Love it. They are spending money on Bing and it's not paying off. Do it with Windows Phone 7 now.

So you'd rather Bing die out to leave Google as the search monopoly? You need your head checked.

UndergroundWire said,
They are spending money on Bing and it's not paying off. Do it with Windows Phone 7 now.

Bing is paying of, what are you talking about? It gets more market-share every month...Google is loosing every month...so it must be a success...

digger1985 said,

So you'd rather Bing die out to leave Google as the search monopoly? You need your head checked.
Oh, now you care about monopolies? Assuming you are a die-hard Windows fan (which I apologize if you aren't), Microsoft has a much stronger monopoly in the desktop OS market than Google has ever had in search! ~90% vs ~66%, respectively.

MS Lose32 said,
Oh, now you care about monopolies? Assuming you are a die-hard Windows fan (which I apologize if you aren't), Microsoft has a much stronger monopoly in the desktop OS market than Google has ever had in search! ~90% vs ~66%, respectively.

In the USA maybe, but worldwide, Google's share is much much higher.

digger1985 said,

So you'd rather Bing die out to leave Google as the search monopoly? You need your head checked.

Monoploy-exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.

There's still other Search engines beside Google and Bing, making Google not having a Search Engine Monopoly. They do not have exclusive control in that market..

The same goes for Windows in the OS market.

zombieChan said,

Monoploy-exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.

There's still other Search engines beside Google and Bing, making Google not having a Search Engine Monopoly. They do not have exclusive control in that market..

The same goes for Windows in the OS market.

Exactly. That's the main reason why it annoyed me when MS got hit with monopoly charges when it wasn't even a monopoly in the first place!

MS Lose32 said,
Oh, now you care about monopolies? Assuming you are a die-hard Windows fan (which I apologize if you aren't), Microsoft has a much stronger monopoly in the desktop OS market than Google has ever had in search! ~90% vs ~66%, respectively.

Google pretty much OWNS the european market. they where over 90% in several european countries.
Bing sucks ass here in europe, just the UK i believe is 'decent', but i often seem to get random search results that have NOTHING to do with what im searching for. On top of that, Google gives me billions of results which are completely useless because of spamsites thanks to BS SEO.

bluefisch200 said,

Bing is paying of, what are you talking about? It gets more market-share every month...Google is loosing every month...so it must be a success...

+1

bluefisch200 said,

Bing is paying of, what are you talking about? It gets more market-share every month...Google is loosing every month...so it must be a success...

+1

bluefisch200 said,

Bing is paying of, what are you talking about? It gets more market-share every month...Google is loosing every month...so it must be a success...

+1

bluefisch200 said,

Bing is paying of, what are you talking about? It gets more market-share every month...Google is loosing every month...so it must be a success...

+1

digger1985 said,

So you'd rather Bing die out to leave Google as the search monopoly? You need your head checked.

You need a lot of things examined. Windows is not a Monopoly? Do we need a definition so you can properly communicate a response to me?

autobon said,

why?

Because the fact that MS has launched their best product range in decades under him, their best selling OS under him, has become far more open, and cooperative, has increased marketshare in all markets, and released a whole new phone US under him.

well all this apparently, in backwards land, prove that he's a terrible CEO...

HawkMan said,

Because the fact that MS has launched their best product range in decades under him, their best selling OS under him, has become far more open, and cooperative, has increased marketshare in all markets, and released a whole new phone US under him.

well all this apparently, in backwards land, prove that he's a terrible CEO...

Microsoft was in a much more dominant position pre-ballmer maybe it isn't all his fault but Microsoft up until recent years was really flagging.

thealexweb said,

Microsoft was in a much more dominant position pre-ballmer maybe it isn't all his fault but Microsoft up until recent years was really flagging.

Yes, because DoJ crippling MS in terms of what it could do and intergrate had nothing to do with it.

People complain when Microsoft buys a company (Skype). People complain when Microsoft doesn't buy a company (Nokia). I think people just like to complain about Microsoft!

Honestly though, because of all of the legacy-type products which Nokia continues to sell, I think it'd be a horrible idea to purchase them. Microsoft only cares about the high-to-middle end, and having to worry about the low-end at this point would be a huge distraction. A strong partnership already accomplishes the Apple-eqsue model of having hardware and software work hand in hand, in a much tighter way than Android phones do today.

I do often wonder what a Windows computer would look like if Microsoft itself designed it. Would it have a bunch of crudware installed? I know it would never happened because when Microsoft stepped into the digital music market with Zune after it's PlayForSure ecosystem basically failed them, all manufacturers basically left.

alexalex said,

Microsoft's Skype = Blue Screen Of Voice.

eh, that might of been funny in the late 90's but 99% of blue screens now days if you even get one are because of bad hardware, RAM, video driver, etc... not exactly Microsoft's fault... besides I've gotten more kernel panics on a Mac then I've gotten Blue screens on windows 7

digger1985 said,

And apple mouse has only one button.

I can see you just arrived from 1995. Welcome to 2011! Boy, you've got so much to catch up on!

MS Lose32 said,
I can see you just arrived from 1995. Welcome to 2011! Boy, you've got so much to catch up on!

Wow, you really did forget to turn on your sarcasm detector.

MS Lose32 said,
I can see you just arrived from 1995. Welcome to 2011! Boy, you've got so much to catch up on!

Yep like Apple finally adding Window resizing through all points in OS X or how about full screen apps. That's innovation for you! I wonder how long before they copy Aero Snap. Welcome to 2011!

MS Lose32 said,
I can see you just arrived from 1995. Welcome to 2011! Boy, you've got so much to catch up on!

Went right over your head.....

1st Skype, now this rumor... c'mon, Microsoft really do go back to buying everything so you can, I don't know, buy Nintendo? I want Pokemon for Kinect!

MASTER260 said,
1st Skype, now this rumor... c'mon, Microsoft really do go back to buying everything so you can, I don't know, buy Nintendo? I want Pokemon for Kinect!

Pokemon for kinect! Now that would be EPIC!

MASTER260 said,
1st Skype, now this rumor... c'mon, Microsoft really do go back to buying everything so you can, I don't know, buy Nintendo? I want Pokemon for Kinect!

This idea is great...yeah please MS...buy Nintendo...

MASTER260 said,
1st Skype, now this rumor... c'mon, Microsoft really do go back to buying everything so you can, I don't know, buy Nintendo? I want Pokemon for Kinect!

Pokemon for Kinect FTW!!!

MASTER260 said,
1st Skype, now this rumor... c'mon, Microsoft really do go back to buying everything so you can, I don't know, buy Nintendo? I want Pokemon for Kinect!

It would be very cool to have such AAA platform titles as Nintendo puts out on the XBox, but Nintendo has a lot of cash as well, so it would be a very costly purchase. I think Sony would probably be cheaper... LOL

Microsoft, one of handful of US corporates with triple A credit score, can borrow money from the market cheaper than even the US treasury itself. Potentially Microsoft can make any kind of big acquisitions even when their cash is not enough.

Having said than, I don't really think Microsoft is going to buy Nokia any time soon.

AtriusNY said,
Microsoft, one of handful of US corporates with triple A credit score, can borrow money from the market cheaper than even the US treasury itself. Potentially Microsoft can make any kind of big acquisitions even when their cash is not enough.

Having said than, I don't really think Microsoft is going to buy Nokia any time soon.


they dont need to borrow money to purchase companies. Their profit 2010 was what, 18bill?
thats just profit, dont even want to know how much money they have after 30+ years of making shi*tloads of money

Jarrichvdv said,
Why would they...

Exactly. It really makes no sense. They would really benefit no more than they do now with the Nokia partnership, and instead would upset their other OEM's... This would make absolutely no sense to Microsoft...

dave164 said,
I doubt this would happen this year after buying Skype for $8.5 billion.

windows 7 made them extra wealthy!

they can!

Ci7 said,

windows 7 made them extra wealthy!

they can!


considering their profit is many billions more last year alone, they can buy companies at the price of skype every week

KDE guys aren't gonna like this ... unless Microsoft neglects Qt for exactly one year (which would then activate the escrow agreement they made that would automatically re-license it under the BSD license)

Ci7 said,
buying Nokia

would just mean they would more then half of mobile market overnight

+1000
Right! Wouldn't that be interesting. Microsoft goes from 3% share to a whopping 20%+ in 24 hrs. That would be awesome.