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back to article Microsoft buys Nokia's mobile business

Microsoft has announced it is buying Nokia's mobile devices and services business. Revealed in a flurry of press releases in the small hours of Tuesday, the deal will see Microsoft “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 …

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Oh, great!

So now we know why Elop was infiltrated into Nokia. He made the whole thing crash and burn, made it MS dependant, and now it is ripe for plucking by MSFT.

If this deal goes through, it will be a very sad time for Nokia, Finland and thw mobile sector as a whole. :(

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Facepalm

Re: Oh, great!

"So now we know why Elop was infiltrated into Nokia."

Now? Where have you been? This was on the cards since Elops name was first associated with Nokia.

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Re: Oh, great!

DUH! Look it up on various tech-sites. Various projects canceled by Nokia, Nokia phone market share shrinking, etc.

This is not really a shock... we kind of forgot about it. Nokia was already working on tablets too, so we will see how that pans out. So do they still remain as "Nokia Phones" or become "Microsoft Phones"??

I see HTC and Samsung (pretty much the only WP makers besides Nokia) dropping WP all together. They don't need MS. They don't need to pay for the privilege. They'll go after MS more so, if any thing. The big difference between Android and WP for other phone makers is that they can do pretty much what they want and not pay for it... compared to WP.

For the most part... as long as MS is in 3rd place, they will be somewhat happy. Blackberry will continue to go down, even thou they do make very good phones.

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The new Blackberry.....

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Anonymous Coward

Re: Oh, great!

Production and R&D to be moved to China.

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Anonymous Coward

Re: Oh, great!

The minute MS do anything with their patents against HTC or Samsung I'm quite sure that they'll drop winphones from their product range. They might even do it anyway as no doubt "Nokia" will now no longer have to pay the MS licence fee for each phone.

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Facepalm

Re: Oh, great!

Few people outside Redmond are aware microsoft have a presence in the mobile phone business.

It will be even fewer now.

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Picture Ballmer in a big chair, stroking a cat....

"Well done, Elop. Mission accomplished."

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Re: Picture Ballmer in a big chair, stroking a cat....

You beat me to it! Though I was going to add "you can come home now..."

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Anonymous Coward

Re: Oh, great!

I hope Nokia senior management from the time are suitable ashamed of themselves for approving Elop and destroying what was once the greatest mobile phone company in the world.

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JDX
Gold badge

Re: Oh, great!

You do realise that claiming Elop deliberately damaged the company to make acquisition easier is to claim he did something utterly illegal, right? If Nokia even suspected it, they or their shareholders could launch a massive lawsuit.

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Anonymous Coward

Re: Oh, great!

Honestly, I can't help but think some of them will launch a lawsuit. I mean in the article is basically says "We won't get a better offer any time soon" and considering how much more Nokia was worth before all this, well...

Not only that but this is kind've "out of the blue" I mean we all know Microsoft was going to buy them, I think Balmer wanted to wait for the value to drop further, but with his departure had to accelerate plans. But that means there was no real bidding etc for their shit. So at the same time I can't help but think some other big company (Samsung / Google etc) may step in and complain that they were never given a shot to bid on Nokia, which would get them the value they deserve.

Because lets face it, as dead as Nokia phones are right now, their patent trove is ripe for the picking. And I can see google wanting those patents to bolster Android. Even moreso if it's a shot in the kneecaps to Microsoft. 5.44 billion euro? Google spent more than double that on motorolla, and I can see them, if they get the opportunity, placing an equally high bid on nokia were they given the chance.

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Anonymous Coward

Re: Oh, great!

Yep - this is great for Microsoft - they can make $40 per phone now instead of $10 via Nokia. And be a true one stop shop like Apple.

It's good for Nokia too - they were taking a long time to turn around the mobile business - and while they were forecast to return to profit next quarter thanks to Lumia sales growing at over 30% a quarter, I think they will make more money out of NSN and their mapping and patents divisions...

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Thumb Down

Re: Oh, great!

Haha tin foil hats ahoy!

Now while I would agree that yes it did look suspicious when Elop first moved to Nokia, let's get one fact straight - Nokia was already in the shitter BEFORE Elop came aboard. Remember the disaster that was the N97 and all subsequent touch-screen Symbian mobiles? That was all Nokia's fault. I had the Nokia N97 - Symbian on it was AWFUL.

Nokia only have themselves to blame by producing such rubbish that they made themselves incredibly vulnerable to a takeover, one that is finally completed now.

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Anonymous Coward

Re: Oh, great!

You really think Nokia could switch to another OS this late in the day?

Nokia can't just stop selling Windows Phones and then wait 12-18 months to start selling phones with Android or some post-Symbian OS. The transition to Windows Phone resulted in a huge loss due to end of line products and waiting for the new ones to pick up sales.

If you really wanted to see Nokia move on from Windows Phone then you're seeing it happen. Nokia could now acquire a small phone start up and get back in the game. Jolla would be an option:

http://www.bbc.co.uk/news/technology-22599877

Of course Nokia is focussing on mapping now and the recent announcement about getting their maps into cars shows were Nokia is heading. They are moving into being more of a technology and infrastructure company than a consumer products company. Lets not forget that Nokia has existed since 1865 when they produced electricity infrastructure products.

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Anonymous Coward

Re: Oh, great!

"The minute MS do anything with their patents against HTC or Samsung I'm quite sure that they'll drop winphones from their product range"

But MS don't need to care anymore. They can make better handsets, and if that fails, simple throw money at the problem until they become market leader...

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Anonymous Coward

Re: Oh, great!

"as dead as Nokia phones are right now"

Erm - you know they sold something like 7 million Lumia's last quarter - and are growing market share rapidly? They are not dead.

Are you confusing them with Blackberry - that Nokia pushed into 4th place globally?

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Anonymous Coward

Re: Oh, great!

Microsoft owns the lumia brand. Any current Nokia phones will remain to be called Nokia phones.

Any featurephones can be called Nokia Asha phones.

Any new phones will be called Microsoft Lumia or whatever Microsoft wants to call them. They just can't use Nokia on *new* smartphones.

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Alien

Re: Oh, great!

Trojan Horse or Corleone tactics, the outcome is the same.

I made this image a while back and it fits well today ...

http://i.imgur.com/VCDnUZU.jpg

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Anonymous Coward

Re: Oh, great!

This is so cool - my Nokia shares are up 40% this morning - have doubled my money since last year when I bought them...

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Re: Oh, great!

The actual deal won't go through until next year due to competition checks and due diligence etc... There is nothing stopping any other company putting in a hostile takeover bid, they could force a shareholder vote on a sale to a different company for more money. So this does not preclude that from happening.

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Headmaster

"kind've"

What's that short for then?

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Re: Oh, great!

There's no need for a conspiracy. Mergers and acquisition talks are only panned to the public if there's a completing reason to do so, usually an attempt to manipulate the final price. Since this has obviously been in negotiation for a long time apparently everyone involved was happy with the price.

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Mushroom

Re: Oh, great!

"So now we know why Elop was infiltrated into Nokia."

We knew it as soon as the burning platforms memo came out. Just look at the wreckage of companies he's left behind on his CV.

There's hope that what remains of Nokia brings back the people on the liferaft. They've still got the rights to use their patents, shame they have to start from scratch with manufacturing though.

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Re: Oh, great!

>Symbian on it was AWFUL.

WRONG!

Series 60, Nokia's terrible, badly written, dated UI, was truly awful.

The Symbian OS underneath was the only thing that kept the N97 going.

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Trollface

Re: "kind've"

'Kind have' - a very common colloquialism in English. In actuality it is a superior English term to 'kind of'.

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Re: Oh, great! (AC 06:22)

You seem to be poorly informed. Samsung and HTC already pay MS patent royalties for Android.

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Re: Oh, great!

1 - Stephen Elop will return to Microsoft to....

Like he ever left!

Somewhere, I'm sure I made a post predicting this exact outcome, I may have even made a date prediction, I'll have to check to see if I can become a high paid business analyst.

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Re: Oh, great!

It's all about patents and MS' very effective, disciplined and well managed legal team to turn a profit.

HTC, Sammy and everyone else may need to produce and sell a share of W8 phones in order to keep trading.

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Re: Oh, great!

Microsoft have bought both the Lumia and Asha brand names, and have rights to use the Nokia brand name on mobile phones until 2016 (Nokia can also use the Nokia brand name in that time, but not on a mobile phone/tablet/whatever).

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Linux

"Erm - you know they sold something like 7 million Lumia's last quarter"

That unit of measure is known as a "By Thursday Lunchtime" in Android speak.

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Anonymous Coward

Re: Oh, great!

"Any featurephones can be called Nokia Asha phones."

How much do you want to bet that the entire dumb handset and feature phone business gets offloaded to Lenovo or some Asian combine. I cannot imagine why Steve B. would have any interest in manufacturing these devices. MS is not going to become a phone manufacturer. They just want to be in the Smartphone business where they think they can be like Apple and make a squillion dollars.

Expect 70% of the acquition to be on the block immediately the deal is signed.

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HAHH!!! I TOLD YOU SO right at the moment when MSFT-TROJAN ELOP...

...DROVE NOKIA'S VALUE TO THE GROUND by killing its entire Symbian, MeeGo etc business with ONE STUPID SENTENCE, A YEAR BEFORE ITS FIRST WP phone was due.

Aside of giving one percent chance for a WP breakthrough it was ALWAYS THE BALLMERIAN PLAN, to drive Nokia to the grounf thus dragging down the price and PICKING UP ITS EXCELLENT HARDWARE & DISTRIBUTION for next to nothing.

Ballmer's last revenge, NOKIA! :D

This incompetent, clueless, fat bald clown with anger issues never knew how to play any part of this mobile game, as a real beancounter at heart with no clue about technology he only knows one solution for everything: acquisition... and boy, the chair-throwing gorilla is one helluva guy at that, burning through so much money without ANYTHING to show I'd be actually surprised Nokia would be still around in 2-3 years.

Good bye, NOKIA and thanks for all the great phones beginning with my first GSM phone, a mighty 2110 around 1994-95.

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Re: HAHH!!! I TOLD YOU SO right at the moment when MSFT-TROJAN ELOP...

whilst your disdain is obvious, It does seem as though Mr B is clever enough to plan and execute a move that even the people who wrote 'Dallas' might pale at people swallowing

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Anonymous Coward

EEEE

Elop: Embrace, extend, extinguish!

Need to update: http://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish

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hands up

who didn't see that one coming.

Anyone?

The Trojan horse has done his work.

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Hand is up

I thought the Greeks had sailed home without bothering to loot the smoking ruins of Troy.

I expected this news six months ago, but thought its time had passed. Elop has done such a thorough job of burning Nokia and Ballmer poisoned carrier relations so badly that I expected Microsoft to leave Elop on his burning platform.

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Re: hands up

Before the event? Plenty of people wont have seen it coming. After the event everyone will have and always did. Human nature.

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Anonymous Coward

Re: hands up

Nokia hired Elop, there is no possible way Nokia could be forced to hire someone they didn't want.

So even if there was or wasn't a Microsoft plan, Nokia ultimately made decision to hire him and they were aware he was joining them from Microsoft.

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Black Helicopters

Re: hands up

Didn't he arrive as part of a deal that saw Nokia get a cool billion from m$

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Anonymous Coward

Re: Hand is up

The Greeks were totally incompetent. They wrecked a competing commercial society, and then suffered a variety of misfortunes. Timeo danaos et dona ferentes? Just "Fear the Greeks" would have been enough.

On this reading, Elop is going to have to be very careful on his way from Finland to Redmond. He needs to watch out for the Sirens (dodgy websites?), women who turn men into pigs (Yahoo boss?), and one eyed giants with a lot of sheep (Apple?). And when he gets back, he's going to have to terminate the contractors at Redmond and a lot of the staff. When he gets there he'll find product development being carried out all day and then cancelled at night.

Homeric parallels. Perhaps cancelling Meego was bashing Astyanyx's brains out. But, on this reading, Jolla is eventually going to grow into a mighty empire, return, and Microsoft will end up as their slaves and entertainers. Best not to push it too far.

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Unhappy

Re: hands up

Didn't he arrive as part of a deal that saw Nokia get a cool billion from m$

Up to a point, Lord Copper ...

Elop got the job at Nokia and then helped to make that deal with his old bosses in Redmond. That may always have been part of the plan, but the deal was made after Elop got the job.

Of course, a Gigabuck was cheap for access to Nokia's patent portfolio. Forcing Nokia to use MS's phone OS was just adding injury to insult.

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Paris Hilton

Re: hands up

Before the event? Plenty of people wont have seen it coming. After the event everyone will have and always did. Human nature.

Though you have to admit, many around here have been expecting something like this ever since Nokia (Elop) mothballed their in-house software development efforts, and some even before that.

Now paid analysts, I'm sure all of them will have always known this would come, starting today.

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Facepalm

Re: Hand is up

>Just "Fear the Greeks" would have been enough.

Well, Nokia went into this with eyes open, so I'd be equally or more content with: "Beware Trojans, they're complete smegheads!"

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Anonymous Coward

Re: hands up

"Nokia hired Elop, there is no possible way Nokia could be forced to hire someone they didn't want."

Elop *was* forced on Nokia, if rumours are to be believed. The chairman of the board, wunderkind Jorma Ollila, had already picked another candidate, but at the last minute, a team of American investors started throwing their weight around, insisting that a non-European be picked. Be that as it may, the biggest shareholder value destruction in history followed, with Elop presiding.

http://www.electronista.com/articles/11/01/26/nokia.may.have.picked.elop.as.ceo.under.pressure/

The big question is, will Elop preside over an even bigger value destruction as the next CEO of Microsoft?

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Never ain't as long as it used to be.

" Jun 20, 2013 ... Acquisition talks between Microsoft and Nokia recently broke down with no plans to revive them." - www.informationweek.com/ mobility/ smart-phones/ microsoft-doesnt-buy-nokia-good-news/ 240157016

And now the deal is done less than 2 months later... I guess Lenovo's talks with Nokia spooked them into it.

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Anonymous Coward

Re: Never ain't as long as it used to be.

Lenovo will get the Asha and then on down ... but from MS instead of Nokia, and Lenovo will have to suck Balmer's dick while they're at it in order to maintain their Win8 supply status.

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Meet MSFT's new CEO: S. "Trojan" Elop aka "The Butcher of Nokia" aka...

..."The Henchman of Ballmer" - and he just delivered. His payment? The CEO of MSFT, I bet.

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Thumb Up

Re: Meet MSFT's new CEO: S. "Trojan" Elop aka "The Butcher of Nokia" aka...

PS: that being said I admit that while I would never work at a Ballmer-led company I can easily imagine Elop as a reasonable boss, even despite working as an insider hitman for the fat clown.

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Anonymous Coward

Re: Meet MSFT's new CEO: S. "Trojan" Elop aka "The Butcher of Nokia" aka...

Microsoft needs someone who will cut failed or failing products, bring some focus, and can see things from the outside. Who other than Elop would you suggest?

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