Nokia get $1 billion handout from Microsoft

Many analysts wondered why Nokia would refuse a partnership with Google, to form an alliance with floundering mobile maker Microsoft. Bloomberg Businessweek have released information which says that Microsoft are handing over $1 billion to Nokia.

The Microsoft and Nokia deal has received a lot of negative press, especially as many feel Nokia would have had a better chance with a modified Symbian or Google Android software. Both Microsoft and Nokia are struggling in this marketplace, but there is no proof that merging them will help the chances of success. Comscore today show that Microsoft are already losing marketshare with the newly released Windows Phone 7. Google Android is growly rapidly while Microsoft struggle to make any kind of impact.

Stephen Elop, Nokia CEO has a long history in the technology industry, having even spent some time as a leader in Microsoft. With the exchange of cash between Microsoft and Nokia, Microsoft will be wanting access to the huge list of Nokia patents.

KitGuru says: Time will tell if this merger will be successful. Competition is healthy, so lets hope so.

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