Finnish smartphone giant Nokia could be planning to sell off its mobile unit entirely to Microsoft in a groundbreaking behind-the-scenes deal, it’s being claimed.
According to journalist Eldar Murtazin, who’s built up quite a reputation for getting his mitts on Nokia smarties long before anyone else, Espoo may be on the brink of accepting it has lost the smartphone battle to rivals Apple and Google and is prepping for negotiations to potentially sell off its mobile manufacturing business to Microsoft.
Murtazin posted in his blog: “Next week Nokia will start the negotiations about the sale of its phone unit to Microsoft.
“For now the results of the negotiations won’t be public, but the deal might close before the end of 2011.”
He added: “Both companies are in a big hurry”.
We’re a bit perplexed to think how such a thing is even possible. We know Nokia is struggling but it’s not exactly majorly in debt or going bankrupt, which are the kind dire strait situations that would necessitate such a move and so soon.
Then again, it’s not so difficult to fathom considering this is a company that emerged from humble beginnings as cobblers and may well want to move on to greener pastures with a truckload of money. It’s quite possible that it wants to cuts its losses in the smartphone space and consolidate its position as one of the world's leading telecommunications infrastructure producers.
What's got us bewildered is 'why now?'. Especially after it’s just completed a deal that would see it make handsets running Microsoft’s Windows Phone 7 operating system, a decision that has already caused its share prices to collapse.
Until details of the deal, if it’s even true, are made public, we can only guess. We have no reason to question Murtazin’s credibility as a reliable source of insider information, but it might be best to wait till next week before selling off all your Nokia stock.