Weird rumour: Microsoft Negotiating To Buy Nokia’s Phone Business

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Odd report coming from Eldar Murtazin, a Russian mobile blogger with good sources at Nokia.Nokia is going to begin negotiations about selling its phone unit to Microsoft this week. Murtazin says both companies want the deal to close by the end of the year, and they’re in a “big hurry.”

Microsoft just partnered with Nokia to make Windows Phone 7 software the main software of choice for Nokia smartphones, so we’re not sure why it would go and buy Nokia’s phone division.

Nokia’s devices and services division accounts for 68% of the company’s revenue, and all of its profits. Without the cell phone business it’s a money-losing company.

Granted, as BGR points out, it started out as a paper company and ended up being a cell phone company, so it could shift into a different company. But this is a different era, we’re not so sure it would be easy to transition away from the mobile phone business.

As for Microsoft, why get into the messy business of cell phone manufacturing?

The reason we’re giving this report some credence is because it comes from Murtazin. He called the Nokia-Microsoft partnership in December. Also, Nokia took legal action against Murtazin last July for having early models of its phones.

Story via: BGR/Unwired