Nokia shareholders okay Microsoft deal

Nokia shareholders okay Microsoft deal
Nokia shareholders have put a seal of approval on the pending Microsoft acquisition of the “Devices and Services” phone business of the Finnish company. The stockholders gave the deal the green light in an extraordinary general meeting at the Helsinki Ice Hall today. Microsoft has earlier extended a $7.2 billion (€5.4 billion) offer to purchase Nokia and an overwhelming 99.7% of the shareholders voted in favor of the acquisition.

If the acquisition passes the final step of regulatory approval, Microsoft will own the Lumia and Asha brands, as well as get access to the Nokia brand. Here is where it gets complicated as Nokia itself will be prohibited from entering back the phone market with its own brand until 2016. After the first half of 2016, Nokia could also start licensing its brand to third parties, so we theoretically we could end up with three companies making Nokia branded phones in late 2016. Theoretically. Actually, Microsoft has agreed to pay some $2.23 billion of the total $7.2 billion acquisition price just for a 10-year non-exclusive right to Nokia's smartphone patents and Here maps. Plus, Microsoft can further extend that licence.

Second, current Nokia CEO Stephen Elop will depart the company and rejoin its former employer of Microsoft. Speculations are running wild over who will be the next Microsoft CEO and Elop is allegedly among the top two candidates along with Ford chief executive Alan Mulally.

Overall, though, we are yet to hear what’s Microsoft exact plan for Nokia and how will it integrate the Lumia and Asha series in its current lineup.

Microsoft is said to have entered serious negotiations over the massive deal back in February at the Mobile World Congress where the chief executives of the two companies conceded that their cooperation did not bring the results they have hoped for. Since then, Nokia’s board is set to have discussed the acquisition proposal dozens of times.

"Subject to the deal with Microsoft closing, Nokia's earnings profile and financial position are expected to strengthen significantly," Nokia CFO Timo Ihamuotila commented on the deal at the company’s last earnings call. Indeed, Nokia’s NSN and HERE divisions are the two profitable divisions of the company while its previously legendary phone division has been in the red for the last few quarters since the Windows Phone transition began.

source: Financial Times (paywall) via TheVerge

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50 Comments

1. shy2papa

Posts: 336; Member since: Jan 23, 2010

Its official one of the greatest phone maker in the world is DEAD R.I.P Nokia I might miss you :(

4. fouadqr

Posts: 326; Member since: Nov 21, 2012

Nokia will own “Nokia Band” but can't use it on any of its own mobile phone till 2015..so there is no rip

7. Beijendorf unregistered

They still have the important stuff, like NSN, HERE and Advanced Technologies. They also maintain their shares in Pelican Imaging meaning they can make amazing smartphone cameras and license them to Microsoft. Essentially, Nokia just ensured they can carry on their legacy, like they always have. If they want to rejoin the smartphone race in 2016, they can do that.

11. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Or whatever gadgets we might have then. Maybe we won't be using phones anymore. :)

16. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Who is the primary user for all of that? If they can use that technology on a variety of operating systems, great. If it's going to be locked into only WP, how is that a plus?

34. bon24x7

Posts: 211; Member since: Aug 30, 2012

I really hope Nokia will make a comeback in 2015 or 2016 with Android or Sailfish OS phones..!!

32. EgyDroid

Posts: 111; Member since: Oct 10, 2013

#Respect. A moment of silence. I wish it'll come back in 2015

40. raphz

Posts: 37; Member since: Oct 22, 2012

Nokia will come back, Im sure of it :)

43. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Hey...a glimpse of a possible future I've seen shows an interactive touchscreen Nokia device retrofitted into the dashboard of a 1960's Corvette...can't remember where I saw it [ ;) ]...but I bet they already have the patent. I'll especially miss these guys, but something tells me this phoenix will rise from the ashes. Now, if I could get Pontiac, Surge, Zima, and Ecto Cooler Hi*C back too... Anyone seen Doc Brown?

2. veer.d

Posts: 89; Member since: Jul 12, 2013

heartbreak for millions

31. EgyDroid

Posts: 111; Member since: Oct 10, 2013

*Billions

33. Commentator

Posts: 3723; Member since: Aug 16, 2011

Maybe millions, but even that seems a pretty high number of people to have invested enough emotion into a single company to be "heartbroken" about it. I'd like to think that most people in the world have more of a life than to worry about than this buyout.

44. corporateJP

Posts: 2458; Member since: Nov 28, 2009

^ You're here, so that's saying something.

3. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

Now Microsoft share holders and the EU regulators have to agree to this and Microsoft will have a First Class smart phone business. My only hope is that Microsoft will let the Nokia employees they will get make the MS Lumia smart phones as good or better than the way they made them for Nokia their parent Company!

9. Finalflash

Posts: 4063; Member since: Jul 23, 2013

LOL keep dreaming guy. No offence, but you MS fanboys need to understand that almost any successful company MS has acquired or dipped their hands in has died a horrible and terrible death. This is just one of many and there is nothing to do but watch it slowly burn down. This is where MS replaces the talent and minds that made that company good with their own puppets (like they did already) and then seriously screw it over. With this acquisition, MS literally just killed WP all over again. Now all their partners will leave (who wants to compete with MS themselves with WP) and their desktop and laptop partners have been slowly jumping ship already. They want to go the Apple route, but can't because they are not Apple. They want to get a foot in the door the Google route, but tough luck seeing as how Google has a very well developed ecosystem now. It just isn't going to happen, they have no inspiration with it and the whole project is being funded by Android patent money (no need to be careful when its all free).

13. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Their only saving grace might be if Elop is made CEO and he keeps it alive. Even if he's not the next CEO, wouldn't surprise me if he's assigned to run this division. And yes, I do believe Elop's main focus these past few years was to transition their phone line to MS. Now that it's about said and done, his next goal will likely be to make something of it. The major difference is MS has deeper pockets.

45. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Not sure to this day how they got away with this. How does a guy leave a company, go to another and push previous company's software and ideals onto current company, help sell (brainwash board first, ofcourse) current company to former company, get golden parachutte on way out of current company, then finally end up back with former company. Yes, yes...Trojan Horse...I know. My question here is: does this not somewhere, somehow violate some type of trade or securities laws? And if not...wow.

5. pongkie

Posts: 663; Member since: Aug 20, 2011

well good luck. There are way too many android devices out there anyway. why cry over for this one?

6. alterecho

Posts: 1106; Member since: Feb 23, 2012

Its not for Android, we weep.

8. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

I'm watching this live from Finnish YLE news website and they haven't made a decision about the purchase yet...

10. alterecho

Posts: 1106; Member since: Feb 23, 2012

Really? Keep us updated man.

14. Donkorvleone

Posts: 19; Member since: May 30, 2013

Siilasmaa is just trying to convince the shareholders yet by saying how good the maps are etc, many shareholders have left the meeting

17. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Yeah and some of the shareholders are still trying to either cancel the purchase or set the price higher.

19. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

That 99,7 is the percentage of the foreign shareholders who voted BEFORE this meeting. So well yeah it's quite obvious that Nokia will be sold.

20. alterecho

Posts: 1106; Member since: Feb 23, 2012

Looks like not much nationalist sentiment with the shareholders.

22. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

NOW they are voting

21. Donkorvleone

Posts: 19; Member since: May 30, 2013

One question was, "will Nokias knowledge remain in Finland or will it be moved?" Microsoft has always kept the businesses they bought in the countries they´re from. That is the greatest news you will get as a finn today, it is a very sad day in finnish history

27. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

I'M SO SAAAAAD

25. Donkorvleone

Posts: 19; Member since: May 30, 2013

99.54% has voted for selling the phonedivision :(

26. alterecho

Posts: 1106; Member since: Feb 23, 2012

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