Microsoft Buys Nokia

Microsoft Buys Nokia

In a $7.2 billion deal, Microsoft will buy out Nokia's smartphone division.

Microsoft boss Steve Ballmer has announced via a staff e-mail that the technological giant responsible for Windows and the Xbox is set to acquire Nokia's Devices and Services business, as well as license the companies patents and mapping services. EUR 5.44 billion ($7.2 billion USD) will change hands, and current Nokia CEO Stephen Elop will become Microsoft's new executive VP of Devices and Services.

What makes this deal particularly interesting is that Elop had actually worked for Microsoft's business division from 2008-2010, before going on to become the first non-Finn CEO of the Finland-based Nokia corporation. 32,000 other Nokia staff will also transition to new positions at Microsoft.

"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," commented Ballmer. "Bringing these great teams together will accelerate Microsoft's share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services."

Nokia and Microsoft have already been working together for more than two years, and partnered to produce the Lumia brand of phones, as well as Nokia being Microsoft's biggest hardware partner on the Windows Phone 8. In this deal, Microsoft will acquire Nokia's Smart Devices division, which includes the Lumia brand.

Julie Larson-Green will continue to oversee the Devices and Studios team at Microsoft, including the impending launch of the Xbox One.

Balmer claims that the move will not, however, lock other potential hardware manufactures out of the Windows Phone platform.

Source: Gamesindustry.biz

Permalink

I thought this had all ready happened. I'm thinking of something different ar'n't I. Anyway, this a good move for Microsoft.

Evil Smurf:
I thought this had all ready happened. I'm thinking of something different ar'n't I.

Not really, last time Nokia got a new Director or President or... well last time they changed the highest dude in office for Nokia was this Elop dude who was some sort of big shot for Microsoft. So this has been predicted for a longer period of time already.
And now it happened. And the Nokia Stocks rose with almost 50% in worth, in the first 30 minutes after the deal was done.

As for my view on the thing.
I guess it's a good move for Nokia but as a Finn I am not too happy with it.
4 years ago, before Elop took charge, Nokia was 4% of the Finnish BNP, 2 years ago it was only 0,5%, and now it will most likely get even lower. So Nokia pretty much WAS a Finnish giant, now we only have angry birds anymore -.-

Guffe:

Evil Smurf:
I thought this had all ready happened. I'm thinking of something different ar'n't I.

Not really, last time Nokia got a new Director or President or... well last time they changed the highest dude in office for Nokia was this Elop dude who was some sort of big shot for Microsoft. So this has been predicted for a longer period of time already.
And now it happened. And the Nokia Stocks rose with almost 50% in worth, in the first 30 minutes after the deal was done.

As for my view on the thing.
I guess it's a good move for Nokia but as a Finn I am not too happy with it.
4 years ago, before Elop took charge, Nokia was 4% of the Finnish BNP, 2 years ago it was only 0,5%, and now it will most likely get even lower. So Nokia pretty much WAS a Finnish giant, now we only have angry birds anymore -.-

Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Kyber:

Guffe:

Evil Smurf:
I thought this had all ready happened. I'm thinking of something different ar'n't I.

Not really, last time Nokia got a new Director or President or... well last time they changed the highest dude in office for Nokia was this Elop dude who was some sort of big shot for Microsoft. So this has been predicted for a longer period of time already.
And now it happened. And the Nokia Stocks rose with almost 50% in worth, in the first 30 minutes after the deal was done.

As for my view on the thing.
I guess it's a good move for Nokia but as a Finn I am not too happy with it.
4 years ago, before Elop took charge, Nokia was 4% of the Finnish BNP, 2 years ago it was only 0,5%, and now it will most likely get even lower. So Nokia pretty much WAS a Finnish giant, now we only have angry birds anymore -.-

Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Yeah true....
But I am afraid soon enough our national clothing will be everyone dressed up in fluffy bird and pig suits :/
Also make that drinking, both alcohol and coffee :D

Got to love that picture, Balmer looks happy as balls and the Nokia guy looks like he just lost his soul to the devil.

Good move for MS tho, the only way anyone will ever buy their phones is under a completely separate name.

Steven Bogos:
Microsoft Buys Nokia

EUR 3.79 billion ($7.2 billion USD) will change hands

in this part of the reality 3.79b€ equals more like 5.01b$,
or 7.2b$ come around as 5.45b€.

Guffe:

Kyber:

Guffe:

Not really, last time Nokia got a new Director or President or... well last time they changed the highest dude in office for Nokia was this Elop dude who was some sort of big shot for Microsoft. So this has been predicted for a longer period of time already.
And now it happened. And the Nokia Stocks rose with almost 50% in worth, in the first 30 minutes after the deal was done.

As for my view on the thing.
I guess it's a good move for Nokia but as a Finn I am not too happy with it.
4 years ago, before Elop took charge, Nokia was 4% of the Finnish BNP, 2 years ago it was only 0,5%, and now it will most likely get even lower. So Nokia pretty much WAS a Finnish giant, now we only have angry birds anymore -.-

Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Yeah true....
But I am afraid soon enough our national clothing will be everyone dressed up in fluffy bird and pig suits :/
Also make that drinking, both alcohol and coffee :D

Worst thing is, I despise Angry Birds. The amount of stupid merchandise is astounding.

This knocks all those rumours of Microsoft completely ditching devices on the head then, some investors might not be happy with that after all the calls to focus on software and only deal with hardware through third parties.

Kyber:

Guffe:

Kyber:
Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Yeah true....
But I am afraid soon enough our national clothing will be everyone dressed up in fluffy bird and pig suits :/
Also make that drinking, both alcohol and coffee :D

Worst thing is, I despise Angry Birds. The amount of stupid merchandise is astounding.

Also this will be one the biggest changes in Finland...
image

Kyber:
Worst thing is, I despise Angry Birds. The amount of stupid merchandise is astounding.

Yeah no kidding. Angry Birds brand coffe? What the bloody hell?

Mr.K.:
Got to love that picture, Balmer looks happy as balls and the Nokia guy looks like he just lost his soul to the devil.

Good move for MS tho, the only way anyone will ever buy their phones is under a completely separate name.

That's just Elop. If he didn't have that look when he drove the stocks to the ground, he did when they abandoned the promising MeeGo project in favor of Windows

BloodRed Pixel:

Steven Bogos:
Microsoft Buys Nokia

EUR 3.79 billion ($7.2 billion USD) will change hands

in this part of the reality 3.79b€ equals more like 5.01b$,
or 7.2b$ come around as 5.45b€.

my mistake, got my numbers wrong

great, less competition

At some point, will there be only like one or two multinationals left that own everything?

Nurb:
great, less competition

Well Nokia's own attempts at a touch screen UI all proved disastrous so they could do worse than an exclusive deal with Microsoft. And the Windows 7 Phone interface is pretty good.

ShipofFools:
At some point, will there be only like one or two multinationals left that own everything?

Not if current Anti-Monopoly laws stay in place. There is a lot of paper work involved in absorbing a very large company to make sure you can't be sued for making a "Monopoly": Disney had to go through it and meet with the Agency that deals with those laws in order to acquire Lucasarts. Odds are, Microsoft (Which at one point was broken up because they were a Monopoly) had to do the same thing. And Anti-Monopoly laws are much harder in other nations then our own, so there's that.

OT: Meh, I don't buy Nokia phones. I buy iPhones. Doesn't affect me in the slightest.

Eh Nokia has been dead to me since they jumped in bed with Microsoft. Still this is an example of why more countries need laws like Japan that ban foreign (read: American) companies from taking everything over under one nation.

ShipofFools:
At some point, will there be only like one or two multinationals left that own everything?

Eh, I don't really think this really hurts competition. Nokia doesn't have so much market share stateside, and Microsoft, for all its attempts to get a handle on the phone market, doesn't have much at all. If anything, I'd think this would help competition, as the measly 2.5% market share Windows Phone has is dwarfed by Apple and Google's offerings, and they could use a competitive nudge - maybe Google would stop doing such silly things as not offering SD slots on their own devices if they had some serious competition that didn't cost $600.

Still, I'm not a fan of what Microsoft has done lately, so they'd have to step things up if they really want to get in on the phone and tablet market. That's just my opinion though.

Wait it wasn't sold yet to Microsoft. Wow.. guess a marriage between cousins is only truly a marriage once the paper is signed .

Lets be fair by now nokia missed the nexus boat. So what is left, something broken as windows mobile?

Microsoft HAS to invest in things as their own products are getting worse and worse. Their own pool is stagnant and an once rising start now is like a tired bull seeing it all fall down. It needs new blood and being big as it is, it seems to feel that the one way to get that is by buying up other companies.

But that only is like a short term blood transfusion. Maybe in 20 years we will have a small left over company of microsoft. Far from as rich and able as it is now.. just living on a few left over products as the world has moved on. Vestiges...

Quite a few big names in the software world are nowadays like that.. old dead stars. They still live but not by much! 2 or 3 entrenched products that as long as such won't be replaced.. they are safe. Brown Stars. We are seeing a company going into a red giant stage.

Last nokia phone i had was 3410, and the rest either looked horrible or lacked features for their price so i lost all interest in their phones, hopefully that will change some day.

There's pretty serious debate about Stephen Elop being a "trojan horse" whose mission was to crash the market value of Nokia and sell it cheaply to Microsoft. Let's look at the evidence:

-Mr. Elop is literally considered "the worst CEO ever", based on the value of company's stock during his leadership
-In 2010 (the year Elop became the head of Nokia), Nokia had 34% share of all smartphones. Now it's 3,1%
-Elop never sold his Redmond house and his family never moved from there when he joined Nokia
-At first Elop didn't sell his MS stock and he was really reluctant about buying Nokia stock
-They sold Nokia quite conveniently just as Ballmer is leaving the head of MS.

I know this might sound a bit of a conspiracy theory, but even the major, respectable news channels in Finland are hinting at this without saying it out loud.

I honestly thought Microsoft already owned Nokia. Since Nokia only made Windows Phones this doesn't really change anything from a consumer standpoint but it is kind of depressing. Nokia made great cell phones and I would have liked to see them make Android devices which I prefer by virtue of being opensource and having a huge amount of app support.

Tastum:
If anything, I'd think this would help competition, as the measly 2.5% market share Windows Phone has is dwarfed by Apple and Google's offerings, and they could use a competitive nudge - maybe Google would stop doing such silly things as not offering SD slots on their own devices if they had some serious competition that didn't cost $600.

Still, I'm not a fan of what Microsoft has done lately, so they'd have to step things up if they really want to get in on the phone and tablet market. That's just my opinion though.

Google doesn't actually make all Android devices. Its the hardware manufacturers like HTC, Samsung, LG, etc that decide what goes into the handsets which is awesome cause it leads to competition and variety with Android devices. Google only designs the Nexus line (which admittedly never have SD card slots). Personally, as long as they at least offer a 32 and a 64 gig model then its fine with me.

But I agree, Microsoft should to do more to be more competitive with iOS and Android. Windows Phone aren't bad but Android and iOS have way better app support and better variety. All Microsoft seems to be doing is its usual strong arm tactics to get people onto Windows. For example, Office 365 is free on Windows phones but it requires a subscription on Android and iOS which is pointless considering there are plenty of document apps available for free. They made the right move with Lumia 40 mega pixel camera phones to lure in customers but they need more on the software front

New headline next week:

Nokia lays off 70% of it's workforce due to locust tactics restructuring and improving of infrastructure. "We will miss those guys but if we want to stay alivecompetitive, we need to rethink our retirement plans architectural premises of company philosophy. We are very afraid looking very positively to the future."

A'tuin:
There's pretty serious debate about Stephen Elop being a "trojan horse" whose mission was to crash the market value of Nokia and sell it cheaply to Microsoft. Let's look at the evidence:

-Mr. Elop is literally considered "the worst CEO ever", based on the value of company's stock during his leadership
-In 2010 (the year Elop became the head of Nokia), Nokia had 34% share of all smartphones. Now it's 3,1%
-Elop never sold his Redmond house and his family never moved from there when he joined Nokia
-At first Elop didn't sell his MS stock and he was really reluctant about buying Nokia stock
-They sold Nokia quite conveniently just as Ballmer is leaving the head of MS.

I know this might sound a bit of a conspiracy theory, but even the major, respectable news channels in Finland are hinting at this without saying it out loud.

I instantly thought these things when I heard the news too.

PoolCleaningRobot:

Google doesn't actually make all Android devices. Its the hardware manufacturers like HTC, Samsung, LG, etc that decide what goes into the handsets which is awesome cause it leads to competition and variety with Android devices. Google only designs the Nexus line (which admittedly never have SD card slots). Personally, as long as they at least offer a 32 and a 64 gig model then its fine with me.

But I agree, Microsoft should to do more to be more competitive with iOS and Android. Windows Phone aren't bad but Android and iOS have way better app support and better variety. All Microsoft seems to be doing is its usual strong arm tactics to get people onto Windows. For example, Office 365 is free on Windows phones but it requires a subscription on Android and iOS which is pointless considering there are plenty of document apps available for free. They made the right move with Lumia 40 mega pixel camera phones to lure in customers but they need more on the software front

Yes, I'm aware (and I own 3 non-Google android devices). Looking at my post, I can see that wasn't clear. Sorry for the confusion.

I was referring to the Nexus line. Google prices their products very aggressively for off-contract phones, making them very attractive. In addition to that they're also likely to be kept up to date for a very long time. But a lack of an SD slot turns it into a no sell for me - or at least it did until they came out with a 64gb version, which happened too late for me. That's enough storage for a phone, but not for a tablet. Sometimes people take vacations in places where wifi is unavailable or inconvenient, and if I can't store more than a few hours' worth of video on my tablet, I'm not buying that tablet. It's just a personal pet peeve, and from what I've been reading on sites like xda-developers, I'm not anywhere close to alone.

I definitely agree that the Lumia's focus on a quality camera was both innovative marketing and a very good idea in general. People are starting to not really have cameras besides their phones anymore, so there is bound to be a market for a high quality camera phone. If they do a good job building apps into the phone that allow quality on-the-fly photo editing as well, they might just carve out a niche. Buying Nokia outright will help them achieve that plan.

PoolCleaningRobot:
I honestly thought Microsoft already owned Nokia. Since Nokia only made Windows Phones this doesn't really change anything from a consumer standpoint but it is kind of depressing. Nokia made great cell phones and I would have liked to see them make Android devices which I prefer by virtue of being opensource and having a huge amount of app support.
...

Well, one of the rumors in circulation, is that forces within Nokia, who have long been losing patience with Windows Phone and Microsoft, were pushing for a shift towards Android and that this buyout was in part a move to prevent the bottom from falling right out of the WP market. :P

Tastum:
Yes, I'm aware (and I own 3 non-Google android devices). Looking at my post, I can see that wasn't clear. Sorry for the confusion.

I was referring to the Nexus line. Google prices their products very aggressively for off-contract phones, making them very attractive. In addition to that they're also likely to be kept up to date for a very long time. But a lack of an SD slot turns it into a no sell for me - or at least it did until they came out with a 64gb version, which happened too late for me. That's enough storage for a phone, but not for a tablet. Sometimes people take vacations in places where wifi is unavailable or inconvenient, and if I can't store more than a few hours' worth of video on my tablet, I'm not buying that tablet. It's just a personal pet peeve, and from what I've been reading on sites like xda-developers, I'm not anywhere close to alone.

Definitely. One of my co-workers loved his Nexus 4 cause of the updates but the thing only comes in a 8 and 16 gig version with no SD card slot which is a joke to me. I've been overcoming the lack of storage on my cheap tablet using usb otg to connect a decent size flash drive and view content straight off it. Once I buy a 128 gig flash drive I should be good on space for all my devices but it doesn't beat the convenience of on-board storage. If I was faced with 2 identical products and one had an SD card slot, I'd pick the SD.

I definitely agree that the Lumia's focus on a quality camera was both innovative marketing and a very good idea in general. People are starting to not really have cameras besides their phones anymore, so there is bound to be a market for a high quality camera phone. If they do a good job building apps into the phone that allow quality on-the-fly photo editing as well, they might just carve out a niche. Buying Nokia outright will help them achieve that plan.

Somebloke:
Well, one of the rumors in circulation, is that forces within Nokia, who have long been losing patience with Windows Phone and Microsoft, were pushing for a shift towards Android and that this buyout was in part a move to prevent the bottom from falling right out of the WP market. :P

Kind of a shame they didn't switch to Android. Those Lumia's are pretty nice. Until/Unless Microsoft is able to put the same OS on tablets, phones, and desktops and provide decent incentive for using it, it looks like Nokia will just fade into obscurity

A'tuin:
There's pretty serious debate about Stephen Elop being a "trojan horse" whose mission was to crash the market value of Nokia and sell it cheaply to Microsoft. Let's look at the evidence:

-Mr. Elop is literally considered "the worst CEO ever", based on the value of company's stock during his leadership
-In 2010 (the year Elop became the head of Nokia), Nokia had 34% share of all smartphones. Now it's 3,1%
-Elop never sold his Redmond house and his family never moved from there when he joined Nokia
-At first Elop didn't sell his MS stock and he was really reluctant about buying Nokia stock
-They sold Nokia quite conveniently just as Ballmer is leaving the head of MS.

I know this might sound a bit of a conspiracy theory, but even the major, respectable news channels in Finland are hinting at this without saying it out loud.

What's more, he's apparently now a serious candidate to replace Steve Ballmer. Why they would consider anyone who has completely trashed a major company? Unless he was doing so with their backing...

Kyber:
Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Sorry to burst your bubble, but Finns no longer have the highest suicide rates - most likely due to the Internet. But we still drink a lot of coffee..

ShipofFools:
At some point, will there be only like one or two multinationals left that own everything?

Looks like it's headed that way, yes - http://nodemy.jit.su/post/VerticalStack

Sol_HSA:

Kyber:
Don't worry, we still have saunas. And the drinking. And the high depression and suicide rates.

Sorry to burst your bubble, but Finns no longer have the highest suicide rates - most likely due to the Internet. But we still drink a lot of coffee..

Our culture is being destroyed one living person at a time...

This is clearly just Microsoft's opening move in an effort to acquire the rights to the N-Gage so that it may finally compete with Sony and Nintendo in the handheld market. Here's to the unveiling of the N-Gage One!

Bill gates asked Steve Ballmer for a new phone. he bought him Nokia.

Now considering that microsoft has started creating shit os and attemted to invade phone amrket, and since Nokia has been making shit phones for god knows how long, i see this union as "you both deserve eachother" deal.

 

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