Is Microsoft about to spend $19 billion to buy Nokia's phone division?
This tweet from Eldar Murtazin says that Microsoft has decided that it could spend $19 billion to buy Nokia's phone division
If the deal is structured using equity, current stockholders are not going to take too kindly to the dilution of their holdings. As of the latest quarterly report, Microsoft had $48 billion in cash, so they might be able to use cash on hand to make a purchase. Although there is nothing in Murtazin's tweet that says that a deal is going to happen, with Nokia's stock at a 13 year low as we reported earlier today, the gang at Redmond might be getting a great bargain if they decide to make the purchase now.
1. corps1089 (Posts: 492; Member since: 20 Jan 2010)
Why alienate Nokia's fanbase iwth a move like this? Nokia's problem has been one of losing market share and if MS buys the phone division, this would only compound the problem due to MS haters and alienating Nokia's installed base...
2. snowgator (Posts: 3201; Member since: 19 Jan 2011)
If so, I will be the first to admit I was 100% wrong. I still do not think Nokia wants to sell it's profitable division. It is still the largest mobile phone maker in the world, and that means the ONLY direction it could have gone is down. Nokia can rebound. Microsoft is in a position right now to simply profit off of Nokia's hardware and name. Why mess with that?
3. bluechrism (unregistered)
While this makes some sense, I don't see it happening.
I think MS would do better with the status quo as it is right now. Nokia will build great hardware for windows phone. As will HTC, Samsung, Acer, Dell, etc. If miicrosoft wants to control the whole thing from top to bottom they could but this would be a big mistake as you would have single maker of windows phone and would leave the market for those manufacturers who are OK not having their own OS all going to Android or (if it is a genuinely compelling option a few years from now) MeeGo.
Companies look at Apple and say, they have a captive and closed market - that must be good. but copying the worst aspects of apples model ins't going to pull in the punters. Keeping the platform as it is with Nokia contributing and many handset makers selling gives MS the opportunity to be big players in mobile, not just another also-ran at the side like WebOs will likely be (however good it is).
8. citizenx888 (unregistered)
I think Elop is there to drive the shares down so that Microsoft can buy up Nokia.