Linked by Thom Holwerda on Thu 20th Jun 2013 18:29 UTC, submitted by MOS6510
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]: Why would Microsoft waste good money on Nokia?
by bentoo on Fri 21st Jun 2013 23:08
in reply to "RE[4]: Why would Microsoft waste good money on Nokia?"
Member since:2012-09-21
RE[6]: Why would Microsoft waste good money on Nokia?
by tylerdurden on Sat 22nd Jun 2013 00:59
in reply to "RE[5]: Why would Microsoft waste good money on Nokia?"
Member since:2009-03-17
This one?
We have a competitive software royalty structure, which includes annual minimum software royalty commitments that vary over the life of the agreement. Software royalty payments, with minimum commitments are paid quarterly. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US dollars. Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments. As of the end of 2012, the amount of platform support payments received by Nokia has exceeded the amount of minimum software royalty commitment payments made to Microsoft, thus the net cash flows have been in our favor. As a result, the remaining minimum software royalty commitment payments are expected to exceed the remaining platform support payments by a total of approximately EUR 0.5 billion over the remaining life of the agreement. However, in 2013 the amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments, thus the net cash flows are still expected to be slightly in our favor.
Member since:
2009-03-17
Can you provide a reference to the actual structure of the contract? I have heard otherwise.
Microsoft is most definitively known as a profitable entity, not a charity.
Edited 2013-06-21 05:16 UTC