Nokia's stock surges 10% on sympathy move after Motorola Mobility offer

Nokia's stock surges 10% on sympathy move after Motorola Mobility offer
After the news broke this morning of Google's $12.5 billion acquisition of Motorola Mobility and the resulting 59% jump in the latter's stock, traders are in force in the market today, seeking out the next company in the industry to be acquired. Almost immediately, investors turned to Nokia. The company has recently fallen from grace, losing the top spot among global smartphone vendors. This afternoon, Nokia's NYSE listed stock is up over 12% to $6.03. That still is nearly half of Nokia's 52 week high of  $11.75.

One possibility that has been making the rounds since the Google-Motorola Mobility deal was announced is a Microsoft acquisition of the Finnish based firm. Some believe that it would make sense since Nokia has committed itself to using Microsoft's Windows Phone Mango to replace Symbian. It is the same relationship that Google and its prey have until their deal closes. And while some point to the huge number of patents owned by Motorola as the main impetus for Google to purchase the company, Nokia does have some valuable patents of its own as Apple recently found out in paying Nokia to avoid a lawsuit.

Other companies that are riding the waves of the Google-Motorola Mobility deal today include RIM (up 4.75%) and Taiwan based HTC (up 3.38%). RIM might be seen as a possible candidate with a stock trading at about one-third of the 52 week high, but unlike Motorola Mobility, the company owns the software used on its phones, including the QNX OS expected on the next-gen BlackBerry Superphones, which reduces any possible synergy for a buyer of the company.

While sometimes a big merger sets off other combinations in the same industry, Google was looking for something more than just hardware for its Android OS. The company was seeking to control the important patents necessary to fend off an attack by Apple and thus might not lead to other combinations in the industry.

source: ZDNet



1. JayRaj

Posts: 54; Member since: Oct 31, 2010

I think Nokia should wait to see the response of Nokia Windows Phone. If it's a hit, Nokia's goin to become the top smartphone manufacturer by a huge margin (which Nokia currently is considering units bought by end users) and it'll outclass its competition as we are seeing that Google is also losing its peace of mind due to competition and taking hasty steps. people are loving the metro UI and Mango. Market is not stable at the moment to conclude, it can turn any way. . .

2. remixfa

Posts: 14605; Member since: Dec 19, 2008

they must of gotten excited and thought MS would run and buy nokia as a defencive move.. lol

3. AhmadAlsayegh

Posts: 326; Member since: Jul 18, 2011

I think it will be a disaster if Nokia gets acquired by Microsoft, this will only minimize OS options for the public, and again less competition is bad for us as consumers it is really bad to see Nokia go down that hard, but still it is early to judge, let us wait and see how Elop's decisions turn out in the next 6 months next what do I expect to happen, -i really expect one of the big companies out there will adopt Meego! -we may see a company merge with HP, or HP may acquire a falling big name? (LG mobility anyone?) -Samsung will have to find a way to work out the PADA OS damn you google, you just gave the smart phone future an unknown turn, bad pain for big companies, and hopefully a good one for us

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

i dont know how it would minimize anything. Nokia is moving to pure WP7 for its smartphones anyways. i dont see how MS actually buying nokia and doin something similar to what google just did changes anything exept MS's patent portfolio... which seems to be all they care about these days.

5. Stuntman

Posts: 843; Member since: Aug 01, 2011

It's a shame that companies are being bought not because of the products they make (or will make), but because of the patents they hold. I'm not sure about MS buying Nokia at this time. As I understand it, MS already holds a lot of patents and got more when they and Apple and others bought the Nortel patents. Google had a lot to gain with their acquisition of Motorola. I don't see the same benefits to MS if they buy Nokia at this time. If the patent wars continue to heat up, then perhaps Nokia would become more attractive to MS. I'm not familiar with what patents RIM and HP hold.

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

I agree totally. There is no advantage to Microsoft obtaining an out-of-country company that is already in the W7 fold without them investing a ton of capital. Google got a ton of patents from a company that needed a cash infusion but can develop hardware and show profitability quickly. Total different situations.

7. JS15278

Posts: 13; Member since: Jul 27, 2011

beetween nokia and microsoft is a crosslicence and nokia contribute to the windows phone so its total different the accusition of motorola from google and no microsoft dont want to buy nokia because nokia is not going to leave them for android while moto recently said that would like to have a relationship like this of Nokia with Microsoft

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