"The most likely final chapter in its storied history sees Microsoft buying up Nokia's sizable patent portfolio, its in-house design and engineering expertise and -- perhaps -- the brand rights," Jonathan Murray, now a Warner Music Group executive, wrote in his blog.
In his post, Murray says he is certain that Microsoft will become a manufacturer of a full range of Windows 8 based smartphones.
"When Microsoft launches a 'Surface Phone' it is quite simply game over for Nokia."
According to Jonathan Murray, Nokia’s strategic options are shrinking rapidly.
"It’s my view that when Microsoft enters the phone business with its own devices Nokia will have run out of time as an independent company," he blogged.
Murray also speculates that Stephen Elop will eventually be back on Microsoft's payroll.
"Perhaps Nokia’s CEO Stephen Elop will even rejoin the Microsoft leadership team to run the phone business. Alternatives to this outcome seem to be very few and far between."
Analysts: Monday do or die for Nokia
The launch of Windows Phone 8 on Monday follows Friday’s release of Windows 8 for PCs and tablets.
Analysts are calling this a make-or-break moment for Nokia.
"Nokia is placing a huge bet on Microsoft and if the gamble doesn't pay off, the losses can be high," said Neil Mawston from Strategy Analytics. "It's putting all its eggs in one basket and that's quite a high-risk strategy."
Mawston is giving Nokia until April to prove it’s still in the race.
Analysts estimate Nokia's current global smartphone market share to be some 4 percent, down from 14 percent a year ago.
On Friday, research firm IDC said that in the July-to-September period, Nokia slid for the first time off the list of the top five smartphone makers in the world. It's still the second-largest maker of phones overall, but sales of non-smartphones are shrinking across the industry.