Microsoft to acquire Nokia’s devices & services business, patents and maps

myavu · 3rd September 2013, 11:23

Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services

Quote:

Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareolders, regulatory approvals and other closing conditions.

Read More here : http://www.microsoft.com/en-us/news/...ncementPR.aspx

OMG!

Can Microsoft pull this together and revamp the old battle with Apple?

Can they eat a healthy pie of android market?

Nokia Lumias are fantastic phones and can Microsoft able to continue the quality and novelty what Nokia offered?

What will be the state of Nokia feature phones like 106, 107, etc?

Guys, kindly pen-down your thoughts.

Cheers!

Vinu

srishiva · 3rd September 2013, 11:45

Interesting will be to see what will they do with lower end phones. Will they have the motivation to continue offering them or concentrate more on smart phones.

ottocycle · 3rd September 2013, 12:54

In last 10 years, thought have personally bought and owned more than 8 phones in last 10 years. But I never owned a nokia as I didn't like it's monopoly in the marked and wanted something different. But it's painful to see such a company getting sold to MS. Hope they retain the name Nokia. Guess they have to buy the brand rights in future, if they want to retain the name.

saket77 · 3rd September 2013, 13:00

I really wish that MS retains the Nokia name for the phones. Though, we can expect some blockbusters in the smartphone market since the HW & SW giants are together now, but as an FM suggested earlier, it will be interesting to see what happens to the entry level phones currently offered by Nokia.
I am sure that there will be an iphone competitor; other than the top ends Lumia.

DerAlte · 3rd September 2013, 13:58

Oh no, not again! Not another tail-light chase by MS.

Anyhow, this was on the cards the day an MS person was asked to head Nokia. I stopped bothering about what Nokia plans to do that day. There is much better stuff around already, and much better stuff that others will build. Who cares what the old fogeys at Redmond think - they are always chasing tail-lights, aren't they? When the chase ends when the car stops at the next lights, or accelerates and goes away - they they are clueless what to do next.

tsk1979 · 3rd September 2013, 14:03

"Embrace and extinguish"

When Elop left MS, here is what MS said
" I appreciate the way that Stephen has been a good steward of the brand and business in his time here, and look forward to continuing to work with him in his new role at Nokia."
http://www.microsoft.com/en-us/news/...statement.aspx

So top guy leaves Microsoft. Joins another company. Takes some decisions which cause the share price to plummet, and then his former company buys the current company. Trojan Horse anyone?

veyron_head · 3rd September 2013, 15:39

I would have thought Nokia would be worth a lot more than 7 Billion USD. Surprised it was only valued at 7 billion. A legendary company that once was the face of the country, now has an american parent.

On another note, I was wondering why MS did not look at Blackberry for acquisition. They could have gotten it real cheap. But integration would have been a nightmare!

srishiva · 3rd September 2013, 15:46

It would be better if it was not named Nokia. But then the brand name itself gives a good recall value to customers. (could be Nokia - by Microsoft)

rajesh1868 · 3rd September 2013, 15:47

Saw this in twitter
https://twitter.com/ltm/status/374750282460061696

Mr_Bean · 3rd September 2013, 15:51

Nokia has been seriously under valued here. Look at Skype, it was brought by Microsoft for $8.5 billion in May 2011

MavericK46 · 3rd September 2013, 16:09

Quote:

Originally Posted by tsk1979

"Embrace and extinguish"

When Elop left MS, here is what MS said
" I appreciate the way that Stephen has been a good steward of the brand and business in his time here, and look forward to continuing to work with him in his new role at Nokia."
http://www.microsoft.com/en-us/news/...statement.aspx

So top guy leaves Microsoft. Joins another company. Takes some decisions which cause the share price to plummet, and then his former company buys the current company. Trojan Horse anyone?

This was the stuff of internet memes when Elop joined Nokia and now history will bear testimony to this having happened.
If Elop wasn't the proverbial gift horse, then this metaphor needs to be retired.

Elop could very well write a book 'Acquisitions for dummies' no?

DerAlte · 3rd September 2013, 17:29

Quote:

Originally Posted by veyron_head

... I was wondering why MS did not look at Blackberry for acquisition. ...

Heh heh the moment MS would even think of doing that, the US Govt. agencies will bring about a stock price crash of MS. They want their stuff to work, not 'promise to work'. MS is limited to the computers on secretaries' desks.

comfortablynumb · 3rd September 2013, 17:37

Quote:

Originally Posted by myavu

Guys, kindly pen-down your thoughts.

So, does this mean we Nokia users will have to re-start our phones every few hours now?

Sorry, just couldn't resist it!

Cheers,
Vikram

pratyush6 · 3rd September 2013, 17:49

This was widely expected. In fact this Sunday I was having a debate about this. No surprises really. Specially when Mr. Elop is heading the Finnish Company.

I wish they retain the Nokia brand and do not make it MS. Lumias are really good phones. They also have had legacy phones which were fairly unbeatable in their respective categories. And in between they had some true masterpieces like N95, N900, the good old 6600, the N9 and who can forget the Communicator!
I wish they can bring back the glory days of Nokia.

I have been a fan of Nokia since they went their seperate way in terms of an OS and really wanted to be different and not ape Samsung or Sony in blindly choosing Android.

safari_lover · 3rd September 2013, 18:15

Microsoft will not be able to use the Nokia brand for the smartphones, since only Lumia and Asha brands are part of the acquisition. However, they can use the Nokia brand for the feature phones for 10 years.

I wonder if MS would invest in the so called feature phones. Looks like they are more interested in upgrading the Asha phone users to the Windows Phones, which is not a bad thing aim for, considering that the Asha phones sold a massive 57 Million units the previous quarter.

3rd September 2013, 11:45	#2
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,372 Thanked: 2,260 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia Interesting will be to see what will they do with lower end phones. Will they have the motivation to continue offering them or concentrate more on smart phones.
	() Thanks

3rd September 2013, 12:54	#3
ottocycle BHPian Join Date: Mar 2010 Location: Hyderabad Posts: 557 Thanked: 756 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia In last 10 years, thought have personally bought and owned more than 8 phones in last 10 years. But I never owned a nokia as I didn't like it's monopoly in the marked and wanted something different. But it's painful to see such a company getting sold to MS. Hope they retain the name Nokia. Guess they have to buy the brand rights in future, if they want to retain the name.
	() Thanks

3rd September 2013, 13:00	#4
saket77 Distinguished - BHPian Join Date: Dec 2012 Location: India Posts: 4,842 Thanked: 14,761 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia I really wish that MS retains the Nokia name for the phones. Though, we can expect some blockbusters in the smartphone market since the HW & SW giants are together now, but as an FM suggested earlier, it will be interesting to see what happens to the entry level phones currently offered by Nokia. I am sure that there will be an iphone competitor; other than the top ends Lumia.
	() Thanks

3rd September 2013, 13:58	#5
DerAlte Senior - BHPian Join Date: Mar 2007 Location: Bangalore Posts: 8,027 Thanked: 2,920 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia Oh no, not again! Not another tail-light chase by MS. Anyhow, this was on the cards the day an MS person was asked to head Nokia. I stopped bothering about what Nokia plans to do that day. There is much better stuff around already, and much better stuff that others will build. Who cares what the old fogeys at Redmond think - they are always chasing tail-lights, aren't they? When the chase ends when the car stops at the next lights, or accelerates and goes away - they they are clueless what to do next.
	() Thanks

3rd September 2013, 14:03	#6
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,688 Thanked: 23,489 Times View My Garage	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia "Embrace and extinguish" When Elop left MS, here is what MS said " I appreciate the way that Stephen has been a good steward of the brand and business in his time here, and look forward to continuing to work with him in his new role at Nokia." http://www.microsoft.com/en-us/news/...statement.aspx So top guy leaves Microsoft. Joins another company. Takes some decisions which cause the share price to plummet, and then his former company buys the current company. Trojan Horse anyone?
	() Thanks

3rd September 2013, 15:39	#7
veyron_head BHPian Join Date: Aug 2009 Location: Bangalore Posts: 597 Thanked: 737 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia I would have thought Nokia would be worth a lot more than 7 Billion USD. Surprised it was only valued at 7 billion. A legendary company that once was the face of the country, now has an american parent. On another note, I was wondering why MS did not look at Blackberry for acquisition. They could have gotten it real cheap. But integration would have been a nightmare!
	() Thanks

3rd September 2013, 15:46	#8
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,372 Thanked: 2,260 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia It would be better if it was not named Nokia. But then the brand name itself gives a good recall value to customers. (could be Nokia - by Microsoft) Last edited by srishiva : 3rd September 2013 at 15:53.
	() Thanks

3rd September 2013, 15:47	#9
rajesh1868 BHPian Join Date: Jan 2008 Location: 515134 Posts: 349 Thanked: 382 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia Saw this in twitter https://twitter.com/ltm/status/374750282460061696
	() Thanks

3rd September 2013, 15:51	#10
Mr_Bean BHPian Join Date: Nov 2008 Location: Bangalore Posts: 894 Thanked: 241 Times View My Garage	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia Nokia has been seriously under valued here. Look at Skype, it was brought by Microsoft for $8.5 billion in May 2011
	() Thanks

3rd September 2013, 17:49	#14
pratyush6 BHPian Join Date: Jun 2013 Location: Toronto Posts: 574 Thanked: 686 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia This was widely expected. In fact this Sunday I was having a debate about this. No surprises really. Specially when Mr. Elop is heading the Finnish Company. I wish they retain the Nokia brand and do not make it MS. Lumias are really good phones. They also have had legacy phones which were fairly unbeatable in their respective categories. And in between they had some true masterpieces like N95, N900, the good old 6600, the N9 and who can forget the Communicator! I wish they can bring back the glory days of Nokia. I have been a fan of Nokia since they went their seperate way in terms of an OS and really wanted to be different and not ape Samsung or Sony in blindly choosing Android.
	() Thanks

3rd September 2013, 18:15	#15
safari_lover Senior - BHPian Join Date: Feb 2007 Location: Bengaluru / Bagdal Posts: 1,157 Thanked: 786 Times	Re: Microsoft to acquire Nokia’s devices & services business, Nokia’s patents, Nokia Microsoft will not be able to use the Nokia brand for the smartphones, since only Lumia and Asha brands are part of the acquisition. However, they can use the Nokia brand for the feature phones for 10 years. I wonder if MS would invest in the so called feature phones. Looks like they are more interested in upgrading the Asha phone users to the Windows Phones, which is not a bad thing aim for, considering that the Asha phones sold a massive 57 Million units the previous quarter.
	() Thanks