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Discussion Starter · #1 ·
There goes Microsoft, ruining another company....

Microsoft Buying Nokia Mobile Phone Division In $7.2 Billion Takeover Deal

Microsoft Corp. is buying Nokia Corp.'s line-up of smartphones and a portfolio of patents and services in an attempt to mount a more formidable challenge to Apple Inc. and Google Inc. as more technological tasks get done on mobile devices instead of personal computers.

The 5.44 billion euros ($7.2 billion) deal announced late Monday marks a major step in Microsoft's push to transform itself from a software maker focused on making operating systems and applications for desktop and laptop computers into a more versatile and nimble company that delivers services on any kind of Internet-connected gadget.​

...and interestingly...

The deal could fuel speculation that Nokia's CEO, former Microsoft executive Stephon Elop, will emerge as a top candidate to succeed Ballmer. Elop will step aside as Nokia's president and CEO to become executive vice-president of Nokia devices and services in preparation for joining Microsoft once the acquisition closes.​

(HuffPo)
 

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Discussion Starter · #3 ·
Actually, the "ruining" began some time ago, when (former Microsoft exec) Elop came aboard as CEO and tied all new Nokia handsets into Windows Phone OS.
 

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nokia was doomed any way.. now they have $7.2 B.. not sure it was a bad deal for them.
 

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nokia was doomed any way.. now they have $7.2 B.. not sure it was a bad deal for them.
Not a bad deal? It was a fantastic deal for them. Allows them to cleanly exit what has become a massive money losing part of the business for them, AND retain the most valuable part of the company (the patents). Most indications are Microsoft overpaid for what they are getting, that said they desperately need what they are getting ( mobile hardware engineering and design expertise) so maybe it'll be worth it for them in the long run.
 

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nokia was doomed any way.. now they have $7.2 B.. not sure it was a bad deal for them.
"Anyway"?

Nokia is doomed now, but they were doing quite well until Elop sank them. They were still the number one selling handset maker in the world before he took charge, and still number two until he saddled them with running Windows on their phones.

...and $7.2B really is a bad deal compared to the $30B a year they were bringing in.
 

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"Anyway"?

Nokia is doomed now, but they were doing quite well until Elop sank them. They were still the number one selling handset maker in the world before he took charge, and still number two until he saddled them with running Windows on their phones.

...and $7.2B really is a bad deal compared to the $30B a year they were bringing in.
Like taking a dump on someone's car that's for sale, then making a discounted offer because it smells bad.
 

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Personally I think he did very well for them given the situation.

Yes, they did $30b last year, but they lost $2b on that revenue, and that was revenue for the whole company not just the handset division.

With this deal,

-They have a large cash injection.
-They got out of the highly competative, low margin handset game.
-They protected tens of thousands of jobs (7200 at home alone)
-They can concentrate on the less competative, high margin highend networking, where they do very well
-They get ongoing patent licensing revenue

Nokia has been on a downward spiral for a long time. Look at Motorola, Erikson, RIM, Palm, HTC, etc.

Their leadership spot and secondary spot now was due to traditional handset sales (non-smartphone) which is a dwindling market. In a couple of years that market will be gone.
 

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Personally I think he did very well for them given the situation.

Yes, they did $30b last year, but they lost $2b on that revenue, and that was revenue for the whole company not just the handset division.

With this deal,

-They have a large cash injection.
-They got out of the highly competative, low margin handset game.
-They protected tens of thousands of jobs (7200 at home alone)
-They can concentrate on the less competative, high margin highend networking, where they do very well
-They get ongoing patent licensing revenue

Nokia has been on a downward spiral for a long time. Look at Motorola, Erikson, RIM, Palm, HTC, etc.

Their leadership spot and secondary spot now was due to traditional handset sales (non-smartphone) which is a dwindling market. In a couple of years that market will be gone.
Ah. Small piece of info I didn't see before. Thanks.
 

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Yes, they did $30b last year, but they lost $2b on that revenue, and that was revenue for the whole company not just the handset division.
Was that actual losses or fancy accounting based on projected sales?
 

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Was that actual losses or fancy accounting based on projected sales?
Net income loss was actually over $3.1B

This included 1 time cash injection ($222 Million) for the sale of their headquarters in Finland.
 

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Thx.
 

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Discussion Starter · #13 ·
One of my favourite blogs - Minimal Mac - has something to say about the Microsoft-Nokia deal:

I can’t help but wonder how many completely new ideas seven billion dollars could have bought. How much innovation, disruption, and pure cool seven billion could have helped Microsoft bring the world. Would seven billion, applied to technology they already had on hand but insist on squandering on last year’s model, create a whole new market that the others would be forced to compete in? Instead of skating to where the puck was, when others are skating to where the puck is, and Apple is skating to where the puck will be, could seven billion buy a whole new game?
 

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peek-a-boo
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Microsoft is about buying stuff (or copying it). It always has been really. It worked well for them until another (apple) came along and developed things they couldn't copy very well on their own.
 

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Discussion Starter · #15 ·
Microsoft Books Its Largest Loss Ever Over Nokia Purchase

Microsoft booked an $8.4 billion charge in the fourth quarter, swallowing a bitter pill by writing off the Nokia phone business it bought just over a year ago.

* * *​

The Redmond, Washington-based software giant posted a net loss of $3.20 billion, its largest loss ever, according to news reports. The 40-cent-per-share loss reversed a profit of $4.61 billion, or 55 cents per share, a year ago.

* * *​

The write-down was expected after CEO Satya Nadella announced 7,800 job cuts two weeks ago. The company will continue to make phones on a smaller scale, paring down its lower-cost offerings.

Nadella told analysts on a conference call he'd like Windows phones to be more targeted at high-end businesses and their employees, much like its Surface tablet, which saw upbeat sales.​

(HuffPo)​
 

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Crazy to think that Nokia had over 60% of the handset market at the time that the iPhone was introduced. When things change in tech, they change hard.
 

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I liked their native ringtone.
 

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Crazy to think that Nokia had over 60% of the handset market at the time that the iPhone was introduced. When things change in tech, they change hard.
you can same the same with black berry as well..
 
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