Details of Microsoft and Nokia's Cash-Laden Handshake Surface

Full details of the partnership between Nokia and Microsoft still haven't been disclosed fully, but Bloomberg has spoken to people "with knowledge," who claim Microsoft is paying Nokia more than $1 billion to promote and develop Windows Phone 7 handsets, for the 5+ years of the agreement. Microsoft is also paying for Nokia's patents, such as the Navteq maps.

It goes both ways though, with Nokia paying Microsoft for every copy of Windows it uses. Interestingly, these sources told Bloomberg that the $1bn cash-handshake was a tactic to make Nokia choose WP7 over Android. [Bloomberg]


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The IP are likely worth more than that and it's much more than Navteq maps. That's just the most visible by consumers. Remember how Nokia, Apple and HTC are all in that patent battle. MS just bought a dog in that fight or at least a free pass. MS will probably recoup (or never have to hand over) that money through license sales. I think MS is just tossing out this 'inside' information to make people forget about how they just traded a used CEO for an entire company. Worst swap since a cow for magic beans. I hope it ends as well for Nokia but I have a feeling it will not. The giant will likely eat the best parts and leave the carcass to rot.