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Microsoft To Buy Nokia Phone Division?

Microsoft may start talks with the world's biggest phone manufacturer Nokia for the potential acquisition of its mobile division, something that will impact the whole industry.

Engadget reports how Eldar Murtazin, the (in)famous blogger who always somehow manages to get hold of handset prototypes before anyone else, wrote that such an eventuality may come to pass.

Mr Murtazin is credited as being the first person on record to affirm, back in December 2010, that Nokia would partner with Microsoft to produce Windows Phone, and he also said back in February 2011 that Nokia would kill the OVI brand.

Nokia has an ex-Microsoftie at its helm, Stephen Elop, so that might help creating some bonds and Nokia has also enlisted Microsoft's strategic partner, Intel, to produce its mobile chips.

The world's biggest software company is also one of the richest, with the recent acquisition of Skype for $8.5 billion likely to make only a small dent in its fortune.

But then, Nokia is worth more than $32 billion and although Microsoft could easily afford it, we suspect that it won't go down that way, or its shares might be savaged by Wall Street.

Instead, we believe that Microsoft will enter a joint venture with Nokia and spin off its mobile arm into a separate company controlled by Microsoft and Nokia, in a shared-risk scheme.