Nokia has again flatly denied that Microsoft intends to either purchase an equity stake in the company or take it over outright. Speculation has been continuous on the matter since the two companies extensive, and expensive partnership was first announced.
Microsoft currently pays Nokia some $250 million a quarter to use its new mobile operating system. Given the massive cash transaction, that Microsoft isn’t picking up any piece of Nokia in the transaction could be viewed as curious. However, as the funds, we presume, are tipped for R&D work and marketing pushes, that Microsoft is not acquiring shares in the company is perhaps not too surprising.
It could also be fact that Microsoft doesn’t want to spook other Windows Phone OEMs by absorbing Nokia; its deal with the company is already quite favorable for the Finnish mobile giant.
Today, in an interview reported by Bits, Nokia’s CEO was firm on the idea of it becoming a Microsoft division: “My expectation is that it stays as a collaboration. There’s never been a discussion about anything else.” Elop did go on to say that there were obvious potential synergies in such a deal, but that nothing was on the table exploring in that particular direction.
Apple makes its own phones, as will Google through its acquisition of Motorola. Interestingly, Microsoft, while trying to reach equal footing with the smartphone giants, is tacking a different course. Time will bear out if it is the right decision or not.