Linked by Thom Holwerda on Tue 3rd Sep 2013 05:39 UTC
Microsoft Ever since Stephen Elop became CEO of Nokia we knew this outcome was inevitable. It was his job to make it as easy as possible for Microsoft to acquire the vital parts of Nokia, and here we are: Microsoft is acquiring Nokia's devices unit for 3.79 billion euro, and another 1.65 billion euro for its patents. It's a bit of a complicated deal in that Microsoft buys the Asha feature phone brand and Lumia smartphone brand outright, but will only license the Nokia name for current Nokia products; the Nokia brand will remain under the control of Nokia the company. This means Nokia as a phone brand is effectively dead.

In addition, Stephen Elop will return to Microsoft. I'm sure entirely coincidentally, Ballmer announced recently that he's stepping down.

All this was as inevitable as the tides rolling in. Nokia has been going downhill and has stagnated ever since the announcement it would bank its future on Windows Phone. It went from being the largest smartphone manufacturer to an also-ran, which is made painfully clear by the fact that Microsoft paid more for Skype than it does for Nokia's devices unit.

A painful end for a once-great phone brand. This was the plan all along, and in essence, Nokia's board has executed it masterfully; the Finnish company has switched core markets several times in its long, long history (it started out as a paper company), and the unprofitable phone business was a huge liability for the company, despite claims by some that Nokia was doing just fine. Nokia's board has masterfully gotten rid of this money pit so it can focus on the parts that are profitable.

And, as always, the next Lumia will turn it all around.

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RE: Comment by Nelson
by zsekeres on Tue 3rd Sep 2013 09:44 UTC in reply to "Comment by Nelson"
zsekeres
Member since:
2011-02-11

Consider the following:
32,000 employees will transfer over. That's massive. Its a testament to the value of the devices unit. Paying $7 billion for what js supposedly a dead end venture doesn't make sense. Obviously Microsoft sees tremendous value.

Culture clash was the term which came to my mind...

Microsoft is buying exclusive rights to the Nokia brand for Asha, you don't pay for something you don't plan to continue, ...

Ah, so Palm is still around? Great! Which reminds me: Who produced these Kin phones which are still famous for their high speed failure?

What is more likely is that Mr. Elop secured the financial stability of Nokia by giving them billions, ridding them of outstanding liabilities,...

That's true! Good for Nokia to get rid of the money pit.

...and transferring the teams executing on the Lumia business to a company with unlimited cash.

Vast amounts of cash - yes. Unlimited? No. And those damned shareholders: See the appointment of ValueAct to the board.

He was masterful in ensuring that Nokia commanded a majority of WP sales in order to force Microsoft's hand, and in the process he's made himself the front runner for CEO to be in charge of the grand vision.

You should join marketing ;-)
... wait that's mean: I take it back...

And every the YOY rising market share of WP is quoted I have to think of this one:
http://xkcd.com/1102/

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