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Microsoft In Talks To Buy Nokia's Smartphone Division?

Posted by samzenpus on from the how-much-were-you-asking? dept.

lightbox32 writes "Analyst Eldar Murtazin announced today that Microsoft chief executive Steve Ballmer was soon to meet his Nokia counterpart Stephen Elop to finalize the purchase of Nokia's smartphone division, which would see patents, staff, and some plants transferred to Microsoft, for an undisclosed price. From the article: '“Steve Ballmer, Andy Lees and Stephen Elop and Kai Ostamo will meet in Las Vegas to finalize agreement about Nokia smartphone unit. Bye Nokia,” he tweeted on Thursday morning."

6 of 192 comments (clear)

  1. Re:This story is a lie by Microlith · · Score: 5, Insightful

    Because companies deny everything up until it happens.

  2. Re:This story is a lie by leoplan2 · · Score: 5, Insightful

    They will keep denying that rumor... If they accept it, it will be a huge PR disaster...

  3. Re:This story is a lie by Tridus · · Score: 5, Insightful

    Because no company has ever denied something right up until it happened, right?

    Nokia denying it means absolutely nothing.

    --
    -- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
  4. Not plausible by Gadget_Guy · · Score: 5, Insightful

    Is there any point in posting an unsubstantiated rumour by someone who has previously claimed that the deal was happening back in May and that Nokia's phone division would be sold by the end of 2011? Nokia is predominantly a phone maker, and I really can't see them wanting to sell the main business of their company to anyone. What would be left of the company?

    And would Microsoft really want to spend the claimed $19 billion on a division that has yet to prove that anybody wants to buy one of their Windows phones? And Nokia have the connections with the carriers that is required to get the phones into the retail system. Given the way Windows phones haven't really been pushed by the carriers, I would think that they need the sales team at Nokia. Buying the patents and manufacturing plants only solves part of the problem - and that assumes that there is a problem in the first place that requires the purchase.

    Finally, I don't think the other phone companies like HTC, LG, and Samsung would feel happy about Microsoft moving into their territory. This sale would only cause friction with those companies, is an expensive risk, and provides no benefit considering that Nokia are already committed to selling Microsoft's platform now.

    1. Re:Not plausible by Microlith · · Score: 5, Insightful

      Is there any point in posting an unsubstantiated rumour by someone who has previously claimed that the deal was happening back in May and that Nokia's phone division would be sold by the end of 2011?

      Eh, if it happens in the next couple months he's not far off in corporate-acquisition-time. He nailed the forced move of Nokia to Windows Phone back months before it happened and people said the same things about him then.

      Nokia is predominantly a phone maker, and I really can't see them wanting to sell the main business of their company to anyone. What would be left of the company?

      Nothing, but I suspect that Microsoft is, by far, the party with the most power here. They have a friendly CEO in charge and a pliable board, willing to do as they say. What would be left? A shell of a company, loaded down with restrictions that would bar them from entering the smartphone space and, for spite, from ever using the patents they sell with Linux.

      And would Microsoft really want to spend the claimed $19 billion on a division that has yet to prove that anybody wants to buy one of their Windows phones? And Nokia have the connections with the carriers that is required to get the phones into the retail system. Given the way Windows phones haven't really been pushed by the carriers, I would think that they need the sales team at Nokia. Buying the patents and manufacturing plants only solves part of the problem - and that assumes that there is a problem in the first place that requires the purchase.

      If they do it, I imagine they could always work out a "discount" of some sort. But most importantly, they have someone who can part the company out to get MS the best deal, rather than having to buy the whole company and all the stuff they don't want (dumbphones, symbian, the N9/Maemo legacy.) Microsoft would probably redouble their efforts to be like Apple, which is why they'd probably also take all the sales teams as well.

      Finally, I don't think the other phone companies like HTC, LG, and Samsung would feel happy about Microsoft moving into their territory. This sale would only cause friction with those companies, is an expensive risk, and provides no benefit considering that Nokia are already committed to selling Microsoft's platform now.

      If I were going to fling (more) barbs in Microsoft's direction, I expect they'd leverage the patents they have to raise the "price" of Android even further above Windows Phone 7, and constrain the options of other vendors so that they have no choice but to compete directly with MS or pay them a ton of cash.

    2. Re:Not plausible by Microlith · · Score: 5, Insightful

      But Nokia lacked direction the with Maemo which got merged with Intel's Moblin to become MeeGo.

      They produced the N9, which was "MeeGo compatible" and based on Maemo. It has apparently sold quite well and met with extremely favorable reviews. They had a direction and had to fight to get where they did due to the Symbian camps in the company interfering. Had that problem been solved and Maemo/MeeGo been pushed to the forefront instead of WP7, I doubt that Nokia's ability to compete would have been questioned. Problem is that would take a CEO with a vested interest in Nokia's success and independence and I don't believe Elop ever had that.