Microsoft (Nasdaq:MSFT) Building Operating System for Tablets

A number of media outlets reported Microsoft (Nasdaq:MSFT) is working on a version of Windows for tablets, as the market demand explodes for the devices.

The operating system being developed by Microsoft will run on processors designed by ARM Holdings PLC (LON:ARM), based in the UK.

Tablets are predominately run by processors from ARM, as well as the majority of other handheld devices.

The timing of the release of the operating system wasn't revealed, but it is a positive move by Microsoft, especially if they are able to build a partnership with ARM which would help them gain ground they've lost in the tablet race.

Microsoft closed Tuesday at $28.07, up $0.26, or 0.93 percent.