Report: Yahoo in Deal with Nokia

Wall Street Journal blog AllThingsD is reporting that on Monday Yahoo! will announce a partnership with Nokia:

And, according to sources, that will be a deal with Finland-based mobile phone giant Nokia (NOK) to build Yahoo (YHOO) email, search and other applications and services into a range of its devices.

While the pair had once discussed Nokia making a Yahoo-centric phone, sources said that is unlikely to be part of this deal.

Nokia remains the largest handset maker in the world, with the dominant smartphone share -- though mostly outside the US. According to the latest Gartner numbers, Nokia has a 44% share of the global smartphone market. 

Obviously then if such a deal is confirmed, it would represent a huge boost for Yahoo!'s mobile efforts and network, which is considerable and global but has lost mindshare and coverage vs. Apple and Google's mobile initiatives. 

Asked for a response to the rumor a Yahoo! spokesman said "We can't comment on rumor or speculation." That generally means some aspect of the rumor is correct.