If this is true... MS has failed. They know that WP7 is dead in the water. They cannot turn around and improve it quickly enough. They have no advantage and every month Android and iOS edge them out. But wait! They have cash! It is all so clear now! They can just buy themselves a successful smartphone platform. Take Nokia's hardware. Add Skype as a built-in killer feature. Mix in some cloud magic and viola! You have the iPhone/Android killer. I imagine that this will drag down everyone involved.