So last week was the big announcement of Microsoft’s $8.5 billion purchase of Skype. Some people may have forgotten back in 2008, Microsoft bought Danger (the makers of Sidekick) for $500 million. That did not work out as well as Microsoft had hoped as seen by summer 2010 release of the Kin phone (which if you blinked you missed it lasting only 7 weeks on the market). In December Microsoft washed their hands of the Kin Phone. Further the Sidekick brand ended up returning to T-Mobile.

Of course there’s the on again, off again talks of acquiring Yahoo! As of April 22nd, Microsoft was expressing interest again in getting Yahoo! But that seems to have put to the side with the acquisition of Skype and today’s rumor.

Microsoft is in talks to acquire Nokia phones division. Really!? What could they possibly want with Nokia that they don’t already have. Keep in mind Microsoft and Nokia have already entered into a partnership back in February to make Windows Phone the OS on Nokia Smart Phones. I just can’t see Microsoft getting into the phone business. Of course if they had their way (those pesky government anti-trust regulations get in the way) they’d have their own phone which would be the only type Windows Phone OS would be offered on (this would be akin to Android only allowing their OS to run on HTC brand phones).

Microsoft only has $32 billion left in cash reserves, which (coincidence) is about what Nokia is currently worth as a whole (phones plus maps (Navteg), music and messaging plus operates a wireless service (through Nokia Siemens Networks)  in Europe). But again, the rumor is that Microsoft wants the purchase the phones division only. It seems both companies are in a hurry too as a deal could be finalized by the end of the year.

Source: The Microsoft Blog