Microsoft reportedly paying Nokia $1 billion for Windows Phone 7 smartphone deal

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We know that Nokia is going to begin making Windows Phone 7 devices, but what we don’t know are the complete terms of the deal that took place between Microsoft and Nokia. And while these may never fully come out, it now looks like quite a bit of money has changed hands from Microsoft to Nokia. The reports are coming from Bloomberg, who have (according to “two people with knowledge of the terms”) learned that amount of money is “more than” $1 billion. Furthermore, and slightly more interesting is that this deal is said to be going into effect for five years. Given that and assuming this all rings out as true, we are going to have quite a few WP7 running Nokia handsets to look forward to over the next couple of years. Of course, to add to this, and on the flip side while Microsoft is paying Nokia, the same is going back to Microsoft in the form of Nokia paying for software licensing. Bottom line, it sounds like lots of money will be changing hands between the two companies.

Via [Bloomberg Businessweek]

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