Is Microsoft bribing Samsung $1 bn to make more Windows Phones?

While Nokia plans to make Android handsets, Microsoft is courting Samsung to continue its production of Windows Phone. The software giant is purportedly offering the manufacturer of the Galaxy smartphones and tablets $1 billion as a form of platform support.

The move of Microsoft, which is still not verified, was leaked on Twitter by Russian blogger Eldar Murtazin.

"Another 'good' news from Microsoft - company negotiate with Samsung and offer 1 billion support if vendor will produce Windows Phone devices," Murtazin tweeted.

Samsung has been producing Windows Phones but its main focus is on Android that proved to be its cash cow through the years given that the open-source platform keeps the cost of production down. What Microsoft is trying to do is similar to how it partnered with Nokia to which it opened a quarterly pipeline of funds amounting to $250 million every quarter as it transitioned from using Symbian to Microsoft's mobile operating system. Eventually, the company bought the mobile division of the Finnish firm.

It is unlikely that Microsoft will eventually buy Samsung, but the latter is king in the mobile industry in terms of marketshare and it will be a perfect partner to bolster the performance of Windows Phone in the global arena.

There have also been recent reports that Microsoft mulls to offer free versions of its Windows RT and Windows Phone to gadget manufacturers.

It will be best to treat the latest rumors with a grain of salt but it is true that Microsoft has been pitching seemingly great deals to device manufacturers in an effort to draw them away from using Google's Android mobile OS. Whether the big budget for platform support or giving manufacturers free access to its software will work to help Microsoft establish itself in the market is another story.

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