Microsoft reportedly pondered buying Nokia, bailed

Summary:The plan was to combine Microsoft with a device maker with scale and then go after the likes of Apple and Samsung.

Microsoft reportedly was in talks to buy Nokia's device unit, but talks broke down.

According to the Wall Street Journal, the move, which isn't all that surprising given the companies' tight partnership on Windows Phone, is the second report indicating that Nokia may be on the block. Huawei may also be interested in buying Nokia.

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The plan was to combine Microsoft with a device maker with scale and then go after the likes of Apple and Samsung. In theory Nokia would give Microsoft the scale to crank out Windows-based tablets as well phones. What's unclear is whether actually owning Nokia would provide any real benefit to Microsoft's market share.

It's also notable that the Journal story noted that Microsoft walked away due to Nokia's placement in the smartphone pecking order. That reality could indicate that Microsoft thinks it needs a new horse to make a dent in the mobile market. Samsung is closely aligned with Google's Android.

Microsoft is in a battle with BlackBerry to be the No. 3 smartphone platform. Windows Phone is ahead for now, but BlackBerry's Q10 appears to be selling well. In either case, Microsoft and BlackBerry are vying to be a distant third to Apple and Samsung.

Topics: Microsoft, Mobility, Nokia, Smartphones

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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