Microsoft "wants to buy Nokia, but talks break down"

The Wall Street Journal is reporting that Microsoft has held talks with Nokia aimed at buying the Finnish company's mobile phone division.

The WSJ is quoting "people familiar with the matter" and says the discussions stalled.

In 2011, Microsoft and Nokia formed a partnership with the phone company agreeing to manufacture smartphones running Windows Phone operating system.

The discussions faltered over price and worries about Nokia's slumping market position, among other issues, these people said. One of the people said talks took place as recently as this month but aren't likely to be revived.

"We have a deep partnership with Microsoft, and it is not uncommon for Nokia and Microsoft to meet on a regular basis," a Nokia spokeswoman said. A spokeswoman for Microsoft declined to comment.

It isn't clear how much money Nokia wanted for its handset unit. Nokia's U.S. stock-market value is more than $14 billion, and the company generated nearly half of its €30.2 billion, or about $40.15 billion, in revenue last year from its mobile-phone segment.

(Source: WSJ)