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Nokia's no white knight for Yahoo despite the logic

By CAROLINE GABRIEL

Published: 16 April, 2008

READ MORE: Nokia

Continued ...

For all its plans to increase its direct-to-consumer presence via its Ovi portal, Nokia knows that, for many years to come, the carriers will remain its bread and butter, and it needs to persuade them to adopt its web services, interfaces and devices - and its revenue sharing model - rather than create their own and relegate the Nokia phones to being mere devices to run operator controlled applications. The existing revenue and brand sharing deals created by Yahoo would set useful precedents.

However, such a marriage is unlikely, though we believe Nokia and Yahoo will become closer partners - something not even precluded any more by a Microsoft acquisition, since Nokia and the Windows giant are far more prepared these days to work together against Google rather than regarding each other as arch-enemies.

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