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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RE[5]: Comment by MOS6510
by BushLin on Tue 3rd Sep 2013 19:57 UTC in reply to "RE[4]: Comment by MOS6510"
BushLin
Member since:
2011-01-26

Your devices unit is irreversibly lost and it'll only drag the whole company into bankruptcy, but you can get out of this mess and still get a decent profit by going WP exclusive and placing the devices unit in a desirable situation for an acquisition from Microsoft.
And in the meanwhile you'll be getting a cash influx from MS to keep the company afloat.

Win-win, right?"


So presumably part of this fantasy deal you envisage also involves them saying that they'll only complete the buy out it when it's worth a fraction of what it is today?

I'm not buying it

Reply Parent Score: 3

RE[6]: Comment by MOS6510
by ichi on Wed 4th Sep 2013 08:33 in reply to "RE[5]: Comment by MOS6510"
ichi Member since:
2007-03-06

So presumably part of this fantasy deal you envisage also involves them saying that they'll only complete the buy out it when it's worth a fraction of what it is today?


Not really, rather than it would be adquired when it was aligned with Microsoft's interests in the mobile market.

It just so happened that the value went down, but given their prior trend of mismanagement it could have gone down anyway with no expectations of selling it until it was worth pennies, and without the few billions they got upfront from MS.

Then again I wasn't there so I obviously don't actually know ;)

Edited 2013-09-04 08:36 UTC

Reply Parent Score: 2

RE[6]: Comment by MOS6510
by hhas on Wed 4th Sep 2013 10:10 in reply to "RE[5]: Comment by MOS6510"
hhas Member since:
2006-11-28

So presumably part of this fantasy deal you envisage also involves them saying that they'll only complete the buy out it when it's worth a fraction of what it is today?


Yep, it's complete nonsense. Nokia was worth infinitely more to MS as an independent partner with 50% smartphone market share. But the burning platform memo ruined that by causing Symbian's users to mass migrate before its WinPhone successor was available, leaving those users with nowhere to go but Android or iOS. Anybody who thinks MS or Nokia would willingly hand their entire smartphone market share over to Google and Apple is smoking some seriously bad crack.

...

Honestly, Thom's Nokia posts should all be titled "Nerds Say the Dumbest Things" as a perfect example of just how phenomenally stupid supposedly intelligent people can be when rabid ideology substitutes for basic logic and common sense. It's embarrassing just to read.

Reply Parent Score: 3