Manufacturer Discussion : Nokia : Microsoft to Buy Nokia€s Devices for 5.44 Billion Euros
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Microsoft Corp. (MSFT) will buy Nokia Oyj (NOK1V)’s handset business for 5.44 billion euros ($7.2 billion) as the Finnish company exits a business it once dominated and the maker of Windows moves into hardware to boost growth.
The deal includes paying 3.79 billion euros for the devices unit and 1.65 billion euros for patents, the companies said in a statement today. Nokia Chief Executive Officer Stephen Elop will step aside to return to Microsoft.
Enlarge image Nokia CEO Stephen Elop & Microsoft CEO Steve Ballmer
Microsoft has battled to stay relevant as consumers shift from using its core Windows software for personal computers toward mobile devices. Nokia is coping with cash-flow challenges stemming from weaker demand as its phones lose market share to handsets from Apple Inc. and manufacturers using Google Inc.’s Android operating system.
“Both Nokia and Microsoft really missed the boat in terms of smartphones, and it is extremely difficult to claw your way back from that,” said Paul Budde, a Sydney-based telecommunications consultant. “The question is whether combining two weak companies will get you a strong new competitor. It’s doubtful.”
Nokia reported in July a 27 percent drop in the number of handsets sold in the second quarter. It’s lost more than 5 billion euros in nine quarters.
Nokia had the largest share of the mobile phone handset market until it was overtaken by Samsung Electronics Co. (005930) in 2012, according to data compiled by Bloomberg.
32,000 Workers
Elop cut more than 20,000 jobs and suspended the company’s dividend in January in an attempt to improve its finances.
“Today marks a moment of reinvention,” Microsoft CEO Steve Ballmer and Elop said in joint blog post. “With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between.”
About 32,000 Nokia employees will transfer to Microsoft as a result of the deal, according to the statement. The devices and services business generated about 50 percent of Nokia’s net sales during 2012, worth an estimated 15 billion euros, the companies said.
“It’s a bold step into the future -- a win-win for employees, shareholders, and consumers of both companies,” Ballmer said in a statement. The deal will “accelerate Microsoft’s share and profits in phones,” he said.
Facebook Inc. (FB) and Google have also pushed ahead in social networking and online advertising, areas where Microsoft remains weak.
“After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders,” Chairman Risto Siilasmaa said in a statement.
Siilasmaa will become interim CEO of Nokia.
http://www.bloomberg.com/news[....]ss-for-5-44-billion-euros.html
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Posted: 2013-09-03 06:49:39
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Rubbish... Terrible News !
Literally it is the end of an empire !
I as ex - Nokia employee in Brazil,'m really bothered by this news, because it represents a point of no return !!!
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Posted: 2013-09-03 07:45:26
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Eldar murtizan from mobile review predicted this several years ago when the tie-in was first anounced.
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Posted: 2013-09-03 08:08:19
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I was just thinking the same thing daviep! Eldar was on top of this long ago!
So I guess the trojan horse aka Elop did enough damage to make Nokia a juicy yet not too expensive package to buy, very sad.
What can Microsoft really do with Nokia though? Other than use their patents to bully Android OEMs, I can't see much else being done, also, what do other WP manufacturers think of this I wonder?
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Posted: 2013-09-03 10:01:11
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The whole "deal" didn't make any sense from the start... this brings it full circle
Congrats to Microsoft, they got an amazing deal with a brilliant business maneuver.
They brought Nokia's price lower than what they got Skype for in 2008
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Posted: 2013-09-03 10:09:19
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Microsoft are assholes. Nokia is trapped now. And a possible Elop as running Microsoft. There's another bad move
_________________
Don't be an iSheep,follow the exclusive sheep!!
[ This Message was edited by: Bonovox on 2013-09-03 10:24 ]
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Posted: 2013-09-03 10:42:00
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There will no more Nokia branded smartphones, will be Microsoft branded.
http://www.theverge.com/2013/[....]er-be-another-nokia-smartphone
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Posted: 2013-09-03 11:03:04
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RIP nokia
what was once my preferred mobile brand on my teenage days were now gone for good
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Posted: 2013-09-03 11:03:45
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So they won't use the Nokia name?? Oh dear
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Posted: 2013-09-03 11:25:00
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On 2013-09-03 11:25:00, Bonovox wrote:
So they won't use the Nokia name?? Oh dear
Yep. Only Asha and Lumia will be used, not Nokia.
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Posted: 2013-09-03 11:26:26
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