Earlier quoted context omitted.
Not for a startup of course, but Microsoft sees this as an investment in business development. MS wants Windows to be a solid mobile platform, and they're pouring a bunch of money into the Nokia deal to increase the availability of Windows Phone 7 handsets. It's the chicken-and-egg problem that effects so many things; a platform can't be successful without software to run on top of it, but no one will develop softwar…
Ballmer absolutely ridiculed Google for making Android free. A couple of short years later and Microsoft goes with a negative price.
Actually, Google also seems to have a negative price for Android. As a device maker it's possible to get paid a percentage of add revenue on the devices you build.