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May 17, 2011

From the Rumor Mill: Microsoft to Buy Nokia?

By Michelle Amodio, TMCnet Contributor

The rumors are off and spreading like wildfire thanks to one Russian mobile blogger, who, apparently has some decent sources. The buzz that is zipping around the Internet is that Microsoft (News - Alert) is going to buy Nokia.

This rumor comes just three months after the companies announced a partnership and just a week after Microsoft said it will acquire Skype for $8.5 billion.

The blogger, Eldar Murtazin wrote that negotiations are starting between Nokia (News - Alert) and Microsoft, and a deal would close by the end of this year. “Both companies are very much in a hurry.” (Google translation)

Murtazin believes financial agreements should be signed before the end of 2011. A price tag (News - Alert) of $30 billion is suggested, but this figure appears to come from other bloggers, reacting to and embellishing Murtazin's posting.

Murtazin is not just another mobile blogger in the blogosphere. In fact, the reason the buzz has some backbone is due to the fact that Murtazin successfully called the Nokia-Microsoft partnership in December. According to Business Insider, Nokia took legal action against Murtazin last July for having early models of its phones.

He was also the man who shocked the tech world with the assertion that only 674,000 Windows Phones were sold during the first quarter they were available, calling it a “total failure.”

If Murtazin is correct, Nokia would leave the mobile phone business entirely, and Microsoft would pick up its mobile unit and start manufacturing Windows Phones using Nokia hardware and technology.

Microsoft just shelled out $8.5 billion – the most it has for any single acquisition in its history – to buy Skype. They already have a partnership with Nokia worth over $1 billion to provide Windows Phone (News - Alert) 7 to Nokia’s next generation of smartphones when they’re announced.

Mark Squires, Nokia’s UK Comm Director, has refuted the remarks via his Twitter account, stating “We typically don't comment on rumors. But we have to say that Eldar's rumors are getting obviously less accurate with every passing moment.”

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Michelle Amodio is a TMCnet contributor. She has helped promote companies and groups in all industries, from technology to banking to professional roller derby. She holds a bachelor's degree in Writing from Endicott College and currently works in marketing, journalism, and public relations as a freelancer.

Edited by Jennifer Russell
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