Microsoft’s takeover of Nokia breaks down

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Wall Street Journal report claims discussions took place earlier this month, but faltered over price and the manufacturer’s market position

Microsoft held advanced talks with Nokia as recent as this month about buying its handset business, but negotiations broke down, with a deal unlikely to be revived.

This is according to a report in the Wall Street Journal, which said that people familiar with the matter had told it that discussions faltered over price and Nokia’s market position.

It said it is unclear how much money Nokia wanted for its handset unit. Nokia’s US stock market value stands at more than $14 billion, with the company generating nearly half of its $30.2 billion in revenue last year from its mobile phone division.

A Nokia spokeswoman told the Wall Street Journal: “We have a deep partnership with Microsoft, and it’s not uncommon for Nokia and Microsoft to meet on a regular basis. Microsoft declined to comment.”

Nokia’s partnership with Microsoft stretches back to February 2011, when the manufacturer signed a deal with the technology giant to use only its Windows Phone operating system on its smartphones.

Ahead of that announcement, Nokia president and CEO Stephen Elop (pictured left with Microsoft chief executive Steve Ballmer) compared the Finnish company to a man standing on a “burning platform”.

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