Nokia and Microsoft may be nearing a deal to put Windows Phone 7 on Nokia's handsets, Bloomberg reported Wednesday evening.
Citing an anonymous source, the report said Microsoft Chief Executive Steve Ballmer and Nokia CEO Stephen Elop have held talks. Elop is the former president of the Microsoft Business division.
Nokia is expected to announce a new strategy on Friday.
An internal memo from Elop to Nokia employees has sparked speculation that the mobile phone maker will partner with a software company, such as Google or Microsoft, rather than staying with its own aging operating system, Symbian. Engadget has a copy of the memo, which called Nokia's current situation a "burning platform" that the company needs to jump off to escape immolation.
Update 11:06 a.m.:
Microsoft and Nokia both declined to comment on the report.
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