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[4]: Comment by MOS6510
by ichi on Tue 3rd Sep 2013 13:02 UTC in reply to "RE[3]: Comment by MOS6510"
ichi
Member since:
2007-03-06

Elop didn't have to trash Nokia from the inside, Nokia itself was doing a pretty good job at that.

The only thing he needed to do is turning a company in freefall into a WP shop. Even if Nokia itself was sinking it's assets would still remain valuable, and they could be obtainable a lot cheaper later on.

With Nokia 100% commited to WP it was just a matter of transfering ownership, as the migration to Microsoft's ecosystem had already been done at Nokias own expense.

So I don't think it was a sabotage, it was probably laid out clearly in front of the shareholders back when Elop was proposed as CEO:

"Your devices unit is irreversibly lost and it'll only drag the whole company into bankruptcy, but you can get out of this mess and still get a decent profit by going WP exclusive and placing the devices unit in a desirable situation for an acquisition from Microsoft.
And in the meanwhile you'll be getting a cash influx from MS to keep the company afloat.

Win-win, right?"

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