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Microsoft allegedly paid $1b to have Nokia use Windows Phone

updated 04:15 pm EST, Mon March 7, 2011

Rumor alleges Microsoft paid 1b to get Nokia deal

Microsoft may have paid $1 billion to help get Nokia using Windows Phone, a rumor alleged Monday. Nokia will reportedly still have to pay a license on every WP7 device it sells, but Microsoft will have paid at least some of the money even before the first device ships. The Bloomberg tip argued it was directly intended to prevent a possible deal with Google that would have seen a switch to Android instead.

Nokia was also partly inclined to choose WP7 simply because its rarity on the market made it stand out where Android was too generic and commoditized, the insiders said, reflecting public statements.

None of the companies involved have confirmed the direct payment. Microsoft has so far only said that cash would only go between the companies for ad and search revenue splits, marketing and the licensing fees. A $1 billion payout would either be an optimistic view of expected revenues or a direct attempt to outbid Google through a cash incentive.

New Nokia CEO Stephen Elop has repeatedly denied being a Trojan horse for Microsoft despite his former role at the Windows developer. The direct financing would support his view as it would suggest Microsoft couldn't have counted on Elop to give it special access.

It nonetheless paints Microsoft as determined to gain share for Windows Phone at all costs. CEO Steve Ballmer is known to have a personal obsession with thwarting Google that has seen the company lose hundreds of millions of dollars every quarter through Bing and other cloud services in an attempt to get a foothold. The concern has extended to mobile, and Microsoft has already been worried enough that it has been suing Android makers to hold them back, but only those like Motorola that haven't promised to make Windows Phone hardware.

Combined, Windows Phone and Windows Mobile have been rapidly losing share even despite the novelty of Windows Phone and Microsoft's $500 million fall ad campaign.



By Electronista Staff
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Comments

  1. phillymjs

    Fresh-Faced Recruit

    Joined: Jun 2000

    +31

    What a coincidence!

    $1b is how much Microsoft would have to pay me to use Windows Phone 7, too!

  1. MyRightEye

    Fresh-Faced Recruit

    Joined: Apr 2008

    +10

    Good news for Apple

    Because no sucker with half a brain will use a Microsoft OS on their phone...

  1. prl99

    Dedicated MacNNer

    Joined: Mar 2009

    +3

    rarity?

    People will argue that Apple products were also rare when they started but Nokia trying to use this kind of an excuse to go with WP7 is a real laugher and a sure sign of a struggling company.

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +7

    Microsoft was right

    As people got over their cellphone and went on to their lives, they learned to leave their phones behind. So much so, they have forgotten Windows 7 phone's existence.

    Time to buy people off.

  1. coffeetime

    Mac Enthusiast

    Joined: Nov 2006

    +5

    Go Figure

    Wow. The truth is out and it's the Microsoft way. Nokia's pride must be all gone down the toilet. I bet Nokia engineers will take the freebie WP7 that Nokia promised and do the Voodoo doll thing.

  1. Fast iBook

    Fresh-Faced Recruit

    Joined: Mar 2003

    +3

    I feel bad...

    I feel kinda bad for microsoft. Their empire is clearly dying and it seems they can't do anything about it.

    - A

  1. Feathers

    Grizzled Veteran

    Joined: Oct 1999

    +6

    Badly Drawn Company

    None of this is surprising given Balmerville's history. There is no such thing as a company that is too big to fail and it's always because of bad management decisions. I genuinely worry for all the normal folk, some 89,000 people worldwide who work for this crumbling monstrosity. There are a lot of husbands and wives at the same company, effectively all their eggs are in one basket. When management desperation really sets in, as a reaction to shareholder anxiety, they will cut costs, or rather jobs. 20,000 worldwide would not be beyond the bounds of possibility. Paying companies to please take their products is not a viable long-term business model but it won't be the management fools who suffer in the end. Ordinary Joe Shmoes will find themselves downsized because of abysmal management.

  1. facebook_Justin

    Via Facebook

    Joined: Mar 2011

    +1

    comment title

    Nokia - Corrupting Phones.

  1. TomMcIn

    Fresh-Faced Recruit

    Joined: Dec 2001

    +2

    MS Staff Pension

    Wonder how many of the MS people are working at getting their pensions out of MS and into a different form of investment. Other big companies have gone under and taken their in-company pensions with them.

  1. smashedbanana

    Fresh-Faced Recruit

    Joined: Jun 2005

    0

    comment title

    I've actually met people recently who have Windows 7 phones. I asked them why they bought them and they told me because you get a free Xbox 360 right now when you buy one. I ask them how they like the phone and they either say they hate it outright or have numerous problems (same difference).

    So enjoy Nokia, Microsoft will make you hate your phone too! But at least your got $1B freebie!

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