Microsoft to pay $1 billion in deal with Nokia

The big Microsoft Nokia deal will cost the Windowsmaker $1 billion. Bloomberg is reporting that Microsoft Corp. will pay Nokia Oyj more than$1 billion to promote and develop Windows-based handsets. Nokia in turn will pay Microsoft a fee for each device sold.
The deal is widely believe to benefit Microsoft more than Nokia. Microsoft used to be a big player in the smartphone market but sat on their heels while companies like Apple and Google made huge gains in market share. Microsoft is almost irrelevant in today's smartphone market, but a deal with Nokia "could" help change that. It is believed that Microsoft desperately wanted to keep Android off of Nokia devices.
“This gives Microsoft scale and allows Nokia to rip out costs,” said Colin Gillis, an analyst at BGC Partners in New York, who recommends buying Microsoft shares. “Microsoft is getting the platform boost that comesfrom acquiring a Nokia for about a billion dollars.”