According to a Wednesday report in The Wall Street Journal (WSJ), software giant Microsoft and Finnish handset maker Nokia were in "advanced talks" about Microsoft's acquisition of Nokia's device business; but the discussions have broken down recently, even before the talks could be made public.

Revealing that there was no chance for the acquisition talks to be resumed, the WSJ report said that the likely reason behind Microsoft's failed acquisition discussions with Nokia - despite the fact that the companies were in "advanced talks" - was that Microsoft could not negotiate the price it wanted for Nokia, which presently has a market capitalization of around $14.3 billion.

In addition, the acquisition talks - which reportedly took place as recently as this month - also faltered because Microsoft was seemingly apprehensive of Nokia's weak position in the smartphone market, which is currently dominated by tech giants Apple and Samsung.

About Microsoft's now fizzled out acquisition of Nokia, industry analyst Jeff Kagan said in an emailed statement that if Microsoft had acquired Nokia's device business, the move would not only have fortified Microsoft's competitive position against Apple, but would also have bolstered the software company's broader position in a diverse market.

Noting that Microsoft's acquisition of Nokia was just the kind of deal he was thinking about "ever since Microsoft and Nokia got together on the Lumia wireless phones," Kagan said: "This is the perfect time for Microsoft to extend beyond their traditional business, and acquiring Nokia could be their ticket to do just that."