Microsoft To Acquire Nokia’s Devices & Services Business

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
Microsoft Corp. and Nokia Corp. today announced that the boards of directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services. Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction cost of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
 
Steve said:
Microsoft Corp. and Nokia Corp. today announced that the boards of directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services. Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction cost of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
Click to expand...

I wonder if this was a condition of getting them to focus on Windows 8 or simply a move to move things more towards the legal arena.
 
Since they already had Nokia in their back pocket, why not buy RIM instead? - Then you take out a competitor, get plenty of patents and have the brand name...
 
young_one said:
Since they already had Nokia in their back pocket, why not buy RIM instead? - Then you take out a competitor, get plenty of patents and have the brand name...
Click to expand...

Soon....If you can't beat'em then buy'em. Forced market share is their motto. I bet Nokia wanted to get out of that exclusivity.
 
RIM will be for Samsung to buy now- as Android seems to be getting more closed Samsung is going to need something and I don't see Bada being the answer.
 
This a great move for both companies. As a Nokia Lumia 920 owner I'm excited about the future of Windows Phone under this deal. Despite many people's dislike of Windows 8 on this site the "Metro" interface works great on a mobile device.
 
Diseaseboy said:
RIM will be for Samsung to buy now- as Android seems to be getting more closed Samsung is going to need something and I don't see Bada being the answer.
Click to expand...

Samsung probably doesn't care about closed or unclosed ... they are the only Android company making a profit ... that gives them a lot of negotiating power with Google to make sure that Android supports their needs ... RIMs patents are about the only useful thing they own and it is unclear if even they provide enough value to justify a purchase

The move by Microsoft certainly has some risk but like many high risk gambles it could pay big or lose big ... since MS hasn't been able to get too many OEMs to support their OS this could be helpful for them to maintain and expand their market share ... you don't need to be the dominant player on the market to make profits ... Apples is around 15% of the phone market (but get tons of profit) and their 5% of the computer market has been equally profitable ... whether MS has the vision to execute this properly is probably the right debate point :cool:
 
kbrickley said:
you don't need to be the dominant player on the market to make profits ... Apples is around 15% of the phone market (but get tons of profit) and their 5% of the computer market has been equally profitable ... whether MS has the vision to execute this properly is probably the right debate point :cool:
Click to expand...
The fact that Apple is vertically integrated on the mobile front has a lot to do with that.

Microsoft buying a mobile OEM puts them in much the same position.
 
young_one said:
Since they already had Nokia in their back pocket, why not buy RIM instead? - Then you take out a competitor, get plenty of patents and have the brand name...
Click to expand...

MS isn't buying patents from Nokia. They're gaining the ability to license them.

I'd still say this is a good deal for MS, although here come the "trojan horse" conspiracies.
 
de·lu·sion·al
adj.
1. See Microsoft

What next, will MS purchase an ARM chipmaker, like STM?
 
Everyone with half a brain cell knew MS was just waiting for Nokia stock price to fall and then buy the company for pennies.

The question is why did the Finns let this happen to their golden cow.
 
They should have bought RIM-Blackberry instead, wrapping up enterprise communications. RIM is even more desperate than Nokia for a buyout(bailout).
 
Microsoft bought Nokia because it wants to greatly increase Windows Phone marketshare in the next five years, from 4 percent now to 15 percent in 2018.

Microsoft Windows Phone + Nokia = a completely failed product + a failing product = a vague hope for future improvement. Microsoft Windows Phone + RIM = a completely failed product + a completely failed product = you've got to be kidding, did you really think that could work?

Oh, this is interesting:

6a00e0097e337c8833017ee7da0bed970d-pi
 
Unknown-One said:
The fact that Apple is vertically integrated on the mobile front has a lot to do with that.

Microsoft buying a mobile OEM puts them in much the same position.
Click to expand...

Which isn't a good thing. Now the little third party OEM interest there was in Winphone has only been further dashed.

I think Paul Thurrott - a pro-Microsoft, pro-Windows blogger said it best: "What Microsoft should be doing is following the PC model, not the Apple model. That means choice, not lack of choice, and no offense to Microsoft, but it can't dictate what people want in the way that Apple can. It shouldn’t even try. And all it has to do is look to Nokia to see how that close partner dramatically expanded its own hardware options to great effect. This is the model that works in the commoditized part of the market. It is the only model that will work on the PC side.
 
Well since the DOJ is miffed over the US Airways/AA merger, I expect they will be all over this as well... Those blow hards...
 
You must log in or register to reply here.
Back
Top