It had to. Nokia was going to diversity into Android, dealing a potentially lethal blow to Windows Phone's credibility. Microsoft was faced with the choice to either pay Nokia a huge sum of money to abstain, or simply acquire the business. Given these options, Microsoft most likely did the right thing.
It makes sense. Look at the broader industry dynamic and logic. Microsoft was already developing its own phone that the Chinese ODM/OEMs would have made for it, just like the Surface tablet. You can't look at Google and Apple and conclude that you need to defy their winning industry logic.
Microsoft Moves to Copy Apple and Google
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