Monday, February 14, 2011

MICROSOFT TO PAY "BILLIONS" IN NOKIA DEAL


Nokia on Sunday hinted that Microsoft essentially won a bidding war against Google to supply software to the world’s largest handset maker and that the software giant agreed to pay “billions” of dollars for the privilege.

It also suggested that the first phones running Windows Phone software are likely to come out this year.

Stephen Elop, Nokia’s new CEO who formerly worked for Microsoft, sought to answer some of the most common questions that have come up since the company announced last week that Nokia would start using the Windows Mobile operating system. He spoke in Barcelona on Sunday, the night before the Mobile World Congress starts.

He referred to a slide that Nokia displayed last week that showed marketing and other investments flowing from Microsoft to Nokia as part of the deal. While speculation has had that number in the millions or tens of millions, it’s more than that, he said. “In fact the value transferred to Nokia is measured in Bs not Ms,” he said. He did not clarify further, such as over what period of time the investment will be made.

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