The Wall Street Journal is claiming as recently as this month Nokia and Microsoft were in advanced merger talks, which have since broken down.
According to their sources at discussions in London the two companies were close to an oral agreement, but Microsoft pulled out due to the price Nokia was demanding, and also due to Nokia current relatively poor standing, behind Apple, Samsung and a host of other Asian companies.
Apparently a sweetener for the deal would be that it would allow Microsoft to use some of their $66 billion in off-shore funds, which would be difficult to bring back to US. Nokia is currently valued at only $14 billion.
Apparently talks are unlikely to resume, but I suspect any serious talk of another potential buyer or of Nokia exploring use of Android will likely bring Microsoft running back to the table. More than 80% of Windows Phones being sold at present are Nokia Lumias.
A Nokia spokeswomen commented “We have a deep partnership with Microsoft and it is not uncommon for Nokia and Microsoft to meet on a regular basis,” while Microsoft decided to stay mum on the topic.
Do our readers think, like I do, a merger is inevitable? Let us know below.