Nokia and Yahoo work on Project Nike

Yahoo late Thursday sent an invitation for an event on Monday that's now believed to be a collaboration with Nokia. The effort, nicknamed Project Nike, is said to have Yahoo build in not just its e-mail and search features but also apps and other services. It had been stalled for years but has been accelerated by Yahoo chief Carol Bartz, and Americas executive VP Hilary Schneider, to bolster the company's presence in the mobile realm.

Both Nokia and Yahoo are thought to be newly eager for the deal as neither is doing well in smartphones. Nokia has been unable to expand as Android and the iPhone have together been taking customers that would otherwise have gone to its own devices. Yahoo has had only a small number of deals that have usually been confined to small elements: on the iPhone, it has provided weather, a secondary search option for Safari and a default icon on SoftBank's models in Japan.

"Recently, Nokia has offered devices that people don’t want and Yahoo has launched mobile services that they don’t want," a source said to AllThingsD. "Perhaps in working together, they will find a way to finally create some value."

By Electronista Staff