The outlook for Nokia was pretty grim yesterday, with one analyst saying that the company was looking at a "disastrous third quarter". Then, everything changed when Microsoft announced that it would purchase Nokia's Devices and Services division for $7.17 billion (including patent licensing). So, it's really no surprise that today was a huge day for Nokia stock.
Right out of the gate, Nokia's stock skyrocketed. At its peak today, the stock was up 45% from yesterday's closing price of $3.90 per share. At the end of the day, Nokia's stock closed up 31% at $5.12 per share.
Given that investors and analysts were calling for Nokia to make more cuts and streamline the business, at least part of this bump has to be attributed to the fact that Nokia's business will be far more streamlined once this deal goes through. Nokia is holding on to its HERE navigation products, its Nokia Siemens Networks, and its patents and development unit. 32,000 employees are being shifted over to Microsoft as well. That's a big restructuring.
Of course, getting $7.17 billion doesn't hurt either.
Michael Heller is known for his clear and informative articles on mobile technology. He explores important topics such as the rollouts of 5G networks and the advancements in mobile payments, offering readers insights into the evolving tech landscape.
Loading Comments...
COMMENT
All comments need to comply with our
Community Guidelines
Phonearena comments rules
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: