Did Microsoft offer Nokia $1 billion to choose Windows Phone over Android?

The news that Nokia chose Microsoft’s Windows Phone 7 as its primary software platform came as a shocker to everyone last month.

While there are still many unanswered questions – including “when will the first Nokia Windows Phone handset be released?” – word on the wire is that Nokia will get more than $1 billion from Microsoft to develop and promote WP devices.

According to Bloomberg and an anonymous source, Microsoft agreed to pay Nokia because it feared the phone maker may have chosen Android instead of Windows Phone. Money aside, it’s said that Nokia chose Windows Phone also because there are already too many Android vendors, and Microsoft’s OS would better allow its handsets to stand out.

Weird enough, Bloomberg reports that Nokia will pay (back?) an undisclosed amount of money for every copy of Windows Phone used on its handsets.

Both Nokia’s and Microsoft’s shares have dropped since the two companies announced their Windows Phone agreement – which will reportedly run for at least five years. Enough time to make this a successful deal (or to screw it up, if you’re on the cynical side).

Author: Florin

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  • http://twitter.com/elforesto Jesse Harris

    ESR totally called that one about a month ago. Nokia needed an out from Symbian, Microsoft needed a reliable partner that wasn’t putting much more effort into Android.