Report: Microsoft and Nokia talked acquisition

Microsoft and cellphone maker Nokia were in advanced talks about an acquisition of the Finnish company's device business, but the discussions have broken down, according to a report in The Wall Street Journal.

Such a deal might have improved both companies' ability to compete in a world dominated by smartphones offered by Apple, which makes both hardware and software, and by Google, which relies largely on third parties for devices that run its Android OS.

But the talks, which took place as recently as this month, have faltered and aren't likely to be revived, The Wall Street Journal reported Wednesday. The discussions were held in London and the companies were close to an oral agreement about a combination, the report said.