Finnish vendor Nokia has denied claims that it is talking to US tech giant Microsoft about selling its mobile division.
The speculation was sparked yesterday in a blog post by famed Nokia watcher Eldar Murtazin, who said initial talks were due to take…
Finnish vendor Nokia has denied claims that it is talking to US tech giant Microsoft about selling its mobile division.
The speculation was sparked yesterday in a blog post by famed Nokia watcher Eldar Murtazin, who said initial talks were due to take place next week. Final agreements could be announced before the end of 2011, claimed Murtazin, who has a good track record for inside information at the company.
However, in an uncharacteristic move from Nokia, Mark Squires, its UK communications director, said on Twitter shortly after the reports: “We typically don’t comment on rumours. But we have to say that Eldar’s rumours are getting obviously less accurate with every passing moment.”
Microsoft declined to comment on what it described as market rumours.
Despite this, the speculation has continued to dominate the media, largely because bold claims by Murtazin have later been proved to be accurate.
He successfully predicted back in December that Nokia was set to use Microsoft’s Windows Phone platform as its main smartphone operating system, which was officially unveiled in February this year. Murtazin has also previously said Nokia was looking to scrap its Ovi brand to adopt an eponymous naming system for its services, which has this week become reality.
Microsoft has shown recently that is it no stranger to audacious acquisitions. Earlier this month, the group rocked the telecoms sector by announcing plans to acquire Luxembourg-based VoIP operator Skype for US$8.5bn. This acquisition is being financed through its existing cash resources, with in-house advisers.
The rumours have also been partly fuelled by the appointment of former Microsoft executive Stephen Elop as Nokia’s CEO on 21 September 2010.
But, although Nokia and Microsoft already have a strategic smartphone alliance, many spectators have questioned whether now is the time for them to undertake what would be a complex and challenging merger.
