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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tylerdurden
Member since:
2009-03-17

When they (MS) pretty much control Nokia's smartphone division in a de facto manner, with little in terms of capital investment.

Reply Score: 7

bentoo Member since:
2012-09-21

When they (MS) pretty much control Nokia's smartphone division in a de facto manner, with little in terms of capital investment.


I wouldn't consider $1B+ little capital investment.

Reply Parent Score: 4

tylerdurden Member since:
2009-03-17

That is a 5 year contract. So it comes down to a bit over $200 million per year. And it is mainly in the form of "funny" money (cross licensing, ad money MS has to sink anyway to promote WP, etc). Microsoft actually recoups part of it, because Nokia still has to pay on a per phone licensing basis, and they get access to some of Nokia's key tech in that space (mainly the navigation technologies).

So it is a great investment as far as microsoft is concerned: they get to take control of a 15 billion market caped company for peanuts basically, while they are shielded from the risk in case Nokia goes south (which they would be on the hook for, if they had acquired them directly). Honestly, it's a much more intelligent approach than google's right out purchase of motorola.

Edited 2013-06-21 00:20 UTC

Reply Parent Score: 9

libray Member since:
2005-08-27

HP took out Palm. Nokia committed suicide with M$'s help. That move WP by default to #4 spot from a field of 6 Mobile OSen. Nice move for not a lot of cash.

Reply Parent Score: 2