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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cdude
Member since:
2008-09-21

Actually past quarters Nokia's license fees where higher then the platform-support payments received from Microsoft.

Reply Parent Score: 5

bentoo Member since:
2012-09-21

Actually past quarters Nokia's license fees where higher then the platform-support payments received from Microsoft.


True, but they are still ahead the money that Microsoft paid in platform payments ($250M - $250M = $0 whereas $0 - $250M = -$250M).

Reply Parent Score: 3

cdude Member since:
2008-09-21

The dude above was so nice to paste matching sentences. The central points in there are:
1. commitment (contractual binding) that is running over years.
2. vary over the life of the agreement.
3. Minimum commitments.

1 and 3 bind them both. If Nokia switches strategy they still need to continue pay. 2 and 3 combined with those "expected to" statement tells that if Nokia sells more Lumia they receive more platform support payments, maybe even pay lesser fees per device. If they switch strategy the case turns around and Nokia needs to pay more.

That agreement is a burden now for any alternate strategy. Well done, Elop.

Edited 2013-06-22 13:21 UTC

Reply Parent Score: 2