Microsoft is Said to Pay Nokia More than $1 Billion
This gives Microsoft scale and allows Nokia to rip out costs
Microsoft Corp. will pay Nokia Oyj more than $1 billion to promote and
develop Windows-based handsets as part of their smartphone software
agreement, according to two people with knowledge of the terms. Nokia will pay Microsoft a fee for each copy of Windows used in its
phones, costs that will be offset as Nokia curtails its own budget for
software research and development.
![Microsoft Company](downloads/images/microsoft_company.png)
Nokia & Microsoft
Nokia & Microsoft
If it succeeds, the partnership may benefit both sides financially while helping stave off a smartphone threat from Apple Inc. and Google Inc. Nokia shares have dropped 26 percent since the accord was unveiled Feb. 11, reflecting doubts about the move to adopt Microsoft’s operating system, which is less than six months old and has just a few percentage points of market share.
“This gives Microsoft scale and allows Nokia to rip out costs,” said Colin Gillis, an analyst at BGC Partners in New York, who recommends buying Microsoft shares. “Microsoft is getting the platform boost that comes from acquiring a Nokia for about a billion dollars.”
Comments
Be the first to write a comment
You must me logged in to write a comment.