Microsoft considered opening online marketplace to compete with Amazon, says WSJ

Microsoft considered building an online marketplace to take on Amazon before it ultimately decided against the venture, reports The Wall Street Journal. Microsoft had reportedly entered into talks with both technology companies and retailers as it explored setting up the marketplace, and it had even begun devising business models to set it apart from the competition. Under one scenario, Microsoft would have subsidized the price of goods with the revenue it made from ads placed on Bing or the marketplace itself. Microsoft confirmed to WSJ that it had stopped developing the marketplace, which was being developed under the codename "Brazil."

It's unclear why Microsoft decided to cancel the marketplace product in the end, but a company spokesperson told WSJ that it's still interested in finding new ways to build a better online shopping experience. The marketplace reportedly would have been integrated into Windows, Windows Phone, and Xbox, bringing into question what exactly the service would have been focused on selling. There's no word about whether Microsoft had planned a web-accessible option, nor if a wide range of consumer products would have been offered or if it would have retained a focus on electronics.

Microsoft flirted with buying Nokia, WSJ says

Nokia House, the company's headquarters in Espoo, Finland.

(Credit: Roger Cheng/CNET)

Microsoft was in deep discussions to acquire Nokia, but talks have broken down, according to the Wall Street Journal.

With such a deal, Microsoft would gain direct control over the mobile device maker, which has been the marquee partner for the software giant's fledgling Windows Phone operating system. Such a deal could shake up the smartphone business in the same way that Google did when it acquired Motorola Mobility.

Both Microsoft and Nokia had been struggling to regain their once dominant positions. Microsoft has been pushed back on its heels with a weakening PC market and tepid reception to its new Windows software. Nokia has fallen far from its once-lofty perch atop the cellphone market, and its new line of Windows Phone-powered Lumia smartphones has yet to break out.Nokia and Microsoft both declined to comment on the report.

Microsoft walked away from the deal because of the price and Nokia's weak position in the market, according to the Wall Street Journal. While Nokia remained the No. 2 cellphone maker by market share, it doesn't rank in the top five when it comes to smartphones, the fastest growing and most lucrative part of the business.

The companies, however, were reportedly close to an oral agreement about a deal, the Wall Street Journal said.

While Windows Phone has made some progress in the market, it still lags far behind Apple's iOS and Google's Android operating system. Nokia has already been the most fervent supporter of Windows Phone, relying solely on the OS for its smartphones at a time when others have opted for the more popular Android OS.