[RUMOR] Should Microsoft buy Nokia Mobile Unit?

by Saad Irfan

Yesterday a blog post by Russian blogger Edlar Murtazin broke the news of Microsoft’s interest in the buying Nokia’s mobile unit. The story is still just a rumor and couldn’t be verified by Nokia or Microsoft Officials.  Also keep in mind, Edlar has the history of strong predictions about Nokia and its business deals, like he predicted about the Nokia and Microsoft windows platform deal way back.

The story came as quite surprising as the total cash Microsoft having is $32.6 billion in tangible assets and Nokia’s worth is around $32 billion. In case Microsoft goes for this deal, at least more than $32 billion would be require to windup the deal.

Just few days ago Microsoft closed the deal of $8.5 billion with SKYPE to acquire the company. Microsoft is willing to use SKYPE to achieve big targets including using the community of 170 million active users (SKYPE) for its strong existence in Smart Phone technology. Microsoft also said, the integration of SKYPE will not be limited but will be available across Xbox Live, Windows Phone and other devices and systems. However Microsoft also promised to provide SKYPE on non-Microsoft platforms as well.

In addition to this, few months ago Microsoft also had a successful deal with Nokia to launch Nokia smartphones running Windows Platform. The devices are not rolled out yet, but will be available in market soon. In short Microsoft got itself a great deal.

After all this huge investments and deals, if Microsoft is still willing to acquire mobile unit is quite risky in terms of finance. Now few questions are worthy to ask here.

Nokia is the king in the mobile industry, and not just limited to manufacturing smartphones but also low and mid price GSM phones also known as disposable phones. Due to this reason Nokia is the most trustworthy brand for 3rd world Countries and South Asian Countries. In case Nokia get itself a deal with Microsoft, the first preference for Microsoft will be to focus on smartphones running windows platform. So it might take down the crown from Nokia if the shipment of low and mid range phones gets affected.

This deal will not only affect its relations with other companies but also HTC, one of the most important partners for Microsoft for manufacturing Windows running phones.

Furthermore, this story came up when Nokia just announced to re-brand its services and change the name from Ovi to Nokia for all services working under Ovi name.