Citing "people familiar with the matter," The Wall Street Journal is reporting that Microsoft was in advanced talks to buy Finnish smartphone manufacturer Nokia. However, a sale is now unlikely. The newspaper reports that talks faltered and "aren't likely to be revived."

The WSJ claims that the two parties were close to an oral agreement but that Microsoft walked away from the deal after disagreements over the asking price. Additionally, Nokia's market position—trailing both Apple and Samsung as it is—was a sticking point. Nokia is, nonetheless, the biggest manufacturer by far of Windows Phone handsets and appears to be slowly increasing its market share.

The deal may have potentially been sweetened by the fact that Microsoft could have used offshore cash to make the purchase. This would have allowed the company to avoid the tax liability incurred by moving the money to the US. Microsoft did this for its 2011 Skype purchase.