Microsoft has found itself unable to leverage it's way into the phone market. When I was getting my daughter an iPhone for Christmas, the sales guy tried to steer me to one of the new Windows phones. He said, "And it's got a ZUNE built in!" I looked at him for a couple of seconds, and he said, "Come on man. We're supposed to push the Windows phones."
Nokia, OTOH, has market share but is losing it faster than they believed possible. My guess is that they're going to go the standard Windows route of "good enough and cheap enough." Unfortunately for them, Android may have that market wrapped up. MS desperately needs to make inroads into areas besides the desktop and Office, and let's face it, they want in this market cause Apple is in the market.
Bingo! I love competition, and that's what this is.
Hostile takeover if Nokia isn't careful.