Nokia Refutes Speculations of Acquisition by Microsoft

Famed leaker of Nokia information Eldar Murtazin had tweeted that Microsoft would purchase Nokia by the end of 2011, though pricing and terms were not known, creating many to speculate about Microsoft’s foray into creating its own hardware for Windows Phone 7 and potentially alienating other OEMs of the platform. However, Nokia has responded and is refuting speculations started by Murtazin.

In a rare exception on commenting on rumors and speculations, a Nokia communications director tweeted, “We typically don’t comment on rumors. But we have to say that Eldar’s rumors are getting obviously less accurate with every passing moment.”

If the deal does happen as Murtazin reported, it would allow Microsoft the same tight control between hardware and software as Apple and HP enjoy right now with iOS and webOS respectively. However, having such control over the software and its own hardware may give Microsoft more power in the hardware business and the company may risk alienating other partners, such as LG, Samsung, and HTC. The deal may also give Microsoft a better strategy to make its Windows Phone division more profitable and worthwhile. Currently, the division still charges OEMs a small fee for the software’s license for each device sold. The lucrative profits is in the hardware business, and Microsoft could stand make additional income by entering into the hardware business with a respected brand like Nokia.

Via: My Nokia Blog


  1. NOK market value is ridiculous low by now. It is making 10% profit from quarter to quarter and has $9 billion cash after debt. Market value is only $33 billion, meaning $24 billion after cash.

    And with Nokia MS would get a lot of money from patents, Navteq Maps (Nokia paid 8 billion for it in 2007) and 50% of the Nokia Siemens Networks. Nokia sells every day 1.3 million mobile phones worldwide.

  2. According to industry insider Eldar Murtazin, Microsoft has struck a
    deal to purchase Nokia’s mobile phone business for $19 billion. Just two
    weeks ago, Murtazin — who has a proven track record and was the first
    to report that Nokia has struck a deal to use Microsoft’s Windows Phone
    platform on its smartphones.

  3. Of course, Microsoft wouldn’t be able to buy Nokia outright for market
    value – there’d have to be some sort of premium. But remember, Murtazin
    reported Microsoft is in negotiations to buy Nokia’s phone division, not the whole company.

  4. Nokia has been swift to dismiss speculation of a smartphone division sale in the past, characterizing its work with
    Microsoft as a partnership on Windows Phone rather than the precursor
    to a break-up. Still, the deal between the firms is markedly different
    to that Microsoft has with other Windows Phone licensees, such as
    Samsung and HTC.

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