Linked by Thom Holwerda on Thu 20th Jun 2013 18:29 UTC, submitted by MOS6510
PDAs, Cellphones, Wireless So, The Wall Street Journal is reporting that Microsoft was very close to take over Nokia, but that the talks eventually broke down, probably beyond repair - at least for now. The reasons the talks broke down illustrate something that I have repeatedly tried to make clear for a long time now: Nokia isn't doing well.
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RE[5]: Just wait...
by bryanv on Fri 21st Jun 2013 03:11 UTC in reply to "RE[4]: Just wait..."
bryanv
Member since:
2005-08-26

The only time MicroSoft doesn't buy company Y are:

1.) When it thinks it can do a good enough job to capture X% of the market share held by company Y and spend less than X% of the market cap of company Y in the process.

2.) When it sees company Y as diseased. The cost of acquisition, restructuring, and brand value is more expensive than the cost of directly competing with company Y.


In both situations, their 'go-to' option is to form a brief partnership involving cross-licensing, knowledge and expertise transfer, and cooperative development agreements.

Once the agreement runs it's course, they re-evaluate the options, having gained valuable insight into the inner workings, culture, and business environment of company Y.

It's a matter of time. If they've had takeover deals fall through, it's a safe bet that option 2 is what we're dealing with here.

It's not like we haven't seen this before.

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