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[4]: Just wait...
by UltraZelda64 on Fri 21st Jun 2013 02:01 UTC in reply to "RE[3]: Just wait..."
UltraZelda64
Member since:
2006-12-05

Yeah--I'm sure you'll be there. ;)

But seriously, I'm just hoping *something* happens--either Nokia just outright fizzles out (at this point, I'd prefer this... just end it already...) or they just hurry up and quit flopping around like a suffocating fish out of the water. These Nokia progress reports, which never really show any good news and only bad, are just getting more and more annoying.

And no matter how you spin it, even Microsoft giving up on a chance to buy them is not a good sign.

Edited 2013-06-21 02:12 UTC

Reply Parent Score: 2

RE[5]: Just wait...
by bryanv on Fri 21st Jun 2013 03:11 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.

Reply Parent Score: 8

RE[6]: Just wait...
by tylerdurden on Fri 21st Jun 2013 05:12 in reply to "RE[5]: Just wait..."
tylerdurden Member since:
2009-03-17

Your analysis seems, to me at least, pretty spot on.

Although, from what I have seen personally, Microsoft has a very aggressive and strongly ingrained corporate identity and "culture." And, for the most part, they don't seem to give a rat's ass about other "cultures." IMO, it's part of what has make them so successful.


Microsoft is exceedingly good at understanding the customer bases and supply chains of their "collaborators" though. And they can "sniff" if and when it makes business sense for them to bypass a partner.

Given how asymmetric their relationship is, Nokia is going to be on a tough spot even if their market share rebounds and Lumia WP devices somehow take off.

Reply Parent Score: 6