Microsoft Walked Away from Deal to Buy Nokia's Phone Division

Although often denied, it would appear that Microsoft and Nokia were in merger talks as recently as last month, until the talks broke down over the price being offered.
That Nokia was even willing to enter into such talks signifies a major development for the company.
Microsoft had been offering to buy the handset division, but walked away due to concerns about Nokia's shrinking market share, and a disagreement over the price being demanded by Nokia.

Citing numerous sources, the Wall Street Journal said talks took place as recently as this month but aren't likely to be revived.
Nokia represents just under 80% of Microsoft's total shipments of Windows Phone software and there have been rumours that Nokia's CEO, Stephen Elop, a former Microsoft man would consider a sale of the phone business to Microsoft.

Indeed, some persistent rumours suggest that a sale had been his plan all along.
The price being asked by Nokia for the handset division is now known, but the company's market capitalisation has dropped to just US$14 billion, and around half its revenues come from phone sales.
Microsoft would almost certainly have to pay a hefty premium though to win over Nokia shareholders to such a deal.
Nokia is expected to announce a major new flagship smartphone next month that may help the company turn around its fortunes.