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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What a sad day
by lucas0 on Tue 3rd Sep 2013 06:21 UTC
Member since:

This price is a joke. They paid 8.5 billions for Skype but only 5.5 for Nokia?

It was obvious that this will happen, but it still makes me sad. I hope the shareholders will not accepts this, or the EU steps in somehow..

Reply Score: 2

RE: What a sad day
by galvanash on Tue 3rd Sep 2013 06:39 in reply to "What a sad day"
galvanash Member since:

This price is a joke. They paid 8.5 billions for Skype but only 5.5 for Nokia?

Its 7.7 billion (5.5 billion is in Euros).

That is half Nokia's current market cap... Still though, considering Nokia has lost about 90% of their value in the last 6 years, I think the board was probably happy to take it.

So now we know what what the real 3 step internet business plan looks like:

1. Get a company to hire your mole in an effort to save their sinking business.
2. ???

Now we know the elusive step 2: do nothing and wait...

edit: that should be 7.2 billion, not 7.7.

Edited 2013-09-03 06:41 UTC

Reply Parent Score: 7

RE[2]: What a sad day
by Fergy on Tue 3rd Sep 2013 07:21 in reply to "RE: What a sad day"
Fergy Member since:

1. Get a company to hire your mole in an effort to save their sinking business.
2. ???

The board voted a guy in that promised to destroy the company and then buy it which probably gave them more money than letting Nokia run.

How can you live with yourself knowing you are a rich bastard that destroyed Nokia and all the great people working there just to get a few extra millions?

Reply Parent Score: 6

RE: What a sad day
by JAlexoid on Tue 3rd Sep 2013 09:16 in reply to "What a sad day"
JAlexoid Member since:

They outright bought Skype, they are only buying parts of Nokia. The smaller part, at that.

Reply Parent Score: 6