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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Comment by OSbunny
by OSbunny on Tue 3rd Sep 2013 06:01 UTC
OSbunny
Member since:
2009-05-23

What exactly is microsoft gaining from this? It seems like a waste of money.

Reply Score: 3

RE: Comment by OSbunny
by shotsman on Tue 3rd Sep 2013 06:12 in reply to "Comment by OSbunny"
shotsman Member since:
2005-07-22

doh!
It's Elop's signing on fee as Balmer's replacement. Didn't you get the memo?

Reply Parent Score: 9

RE: Comment by OSbunny
by Hayoo! on Tue 3rd Sep 2013 06:38 in reply to "Comment by OSbunny"
Hayoo! Member since:
2013-04-13

A lot!

They get the division's patent portfolios, for starters. Then its human resources (including the smart engineers and industrial designers) experience, sales and marketing channels, just to name a few. In short, that $3.7b is a bargain basement price really, all things considered.

Reply Parent Score: 4

RE[2]: Comment by OSbunny
by Radio on Tue 3rd Sep 2013 11:11 in reply to "RE: Comment by OSbunny"
Radio Member since:
2009-06-20

Sales and Marketing was already taken over by Microsoft, with big checks and little success.

Reply Parent Score: 1

RE[2]: Comment by OSbunny
by glarepate on Wed 4th Sep 2013 03:40 in reply to "RE: Comment by OSbunny"
glarepate Member since:
2006-01-04

Here are the patents they are getting:

As part of the transaction, Nokia is assigning to Microsoft its long-term patent licensing agreement with Qualcomm, as well as other licensing agreements.

---

Here are the patents they are not getting:

Nokia will retain its patent portfolio and will grant Microsoft a 10-year license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement in perpetuity.

In addition, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four-year license.


[Source http://www.microsoft.com/en-us/news/press/2013/Sep13/09-02Announcem...]

Reply Parent Score: 4

RE: Comment by OSbunny
by sdeber on Tue 3rd Sep 2013 07:20 in reply to "Comment by OSbunny"
sdeber Member since:
2005-07-06

I guess Microsoft is trying to be the next Apple. To be honest, I cannot see any future of this strategy.

Reply Parent Score: 3

RE[2]: Comment by OSbunny
by Deviate_X on Tue 3rd Sep 2013 10:36 in reply to "RE: Comment by OSbunny"
Deviate_X Member since:
2005-07-11

I guess Microsoft is trying to be the next Apple. To be honest, I cannot see any future of this strategy.


The tech-consumer field is actually a very difficult business to stay alive in for long. Many many companies boasting vast market shares have gone out of existence, and many have nearly gong out of existence (ask Apple) or escaped to the un-sexy (IBM) and now Nokia (with NSN).

Microsoft is clearly attempting to stay in this game. Everything changes, and everything will certainly change again.

Reply Parent Score: 4