Questionable financials spark new rumors that Nokia is going to sell its handset business

Questionable financials spark new rumors that Nokia is going to sell its handset business
Apparently, the recent deal for Nokia to purchase Siemens stake in Nokia Siemens Networks has turned some heads, but surprisingly noton Wall Street. The thing is that analysts can't quite understand how the financials are going to work, and are prompting many to once again bring back the rumors that Nokia is planning to sell off its handset business, but Wall Street is perfectly calm right now.

Here's the problem with the math: a recent report by Reuters has said that Nokia is "burning through its cash". Nokia's cash position has dropped from 4 billion euros to somewhere in the range of 2 to 2.5 billion euros, and that was before Nokia announced that it was planning to spend 1.7 billion to buy out Siemens. The theory is that Nokia could run out of cash as soon as next summer. 

But, Wall Street doesn't see this as a problem, and the theory behind that non-reaction is that Nokia is planning to sell its handset business. Of course, we've heard these rumors before. Just about every year, there is a new rumor that Microsoft is going to buy Nokia (or almost bought Nokia, but negotiations mysteriously fell apart), and Huawei has recently expressed interest in buying Nokia, before backtracking on that idea. The Huawei idea was just a one-off comment at first, but recently a former Nokia exec did join Huawei, so we may hear more on that. 

source: Reuters via BGR

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52 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Sammy is going to buy Nokia. Patents plus camera technology portfolio provides a nice firewall against Apple.

3. NOKIAUSR

Posts: 1; Member since: Jul 03, 2013

silly comment!

6. sats.mine2k4

Posts: 208; Member since: Aug 10, 2012

Agree totally, Minus their camera tech...Nokia's lumia line is just PURE crap...

11. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

Troll Alert !!

18. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

im missing that thumbs down button

22. Nathan_ingx

Posts: 4766; Member since: Mar 07, 2012

Just type 'A big red down thumb for you'...all said and done!

30. Boreni

Posts: 28; Member since: Feb 22, 2013

Huawei wanted to buy Nokia, at the end they had the money to buy only one employee from Nokia.

41. MartianMe unregistered

You only think that because they're running on windows... you have to remember that android os is so powerful so it needs higher specs from oem's like more ram,cores with faster speed etc.so if nokia would make an android fone ,,,which they should!!. they would have to step up-to-date and the could do it by the way..

49. dre786

Posts: 46; Member since: Nov 10, 2012

yeah minus the xxx samsung gs series is pure crap same thing goes for iphone too just dont hate on a good complete phone sound like you scared it may catch on

53. max9777

Posts: 78; Member since: Dec 11, 2011

I beg to differ, I am not a big windows fan, but when I played around with the 928, it was an amazing phone, no lag, very responsive! design was a little off, but I can't blame them, they do not want to be sued by apple or anyone else, for infringing on design or some other crap!

24. sergiobr

Posts: 718; Member since: Feb 25, 2013

Agree

54. Trex95

Posts: 2315; Member since: Mar 03, 2013

It seems that you forget Microsoft! Bell gates alone he can buy the whole Samsung group Lol.

2. ryq24

Posts: 872; Member since: Oct 17, 2011

If nokia sell their mobile business then what is left of nokia? Back to making paper?

8. Nematc

Posts: 28; Member since: Feb 02, 2012

No they will continue with luna bluetooths and monster headsets, Happy?

31. FISTFLY

Posts: 27; Member since: Jul 03, 2013

My Nokia 101 then will be rare , the sell price will be as high as antiques

4. ryq24

Posts: 872; Member since: Oct 17, 2011

If nokia sell their handset business then what is left of nokia? Back to making paper?

7. Nematc

Posts: 28; Member since: Feb 02, 2012

No they will continue with luna bluetooths and monster headsets, Happy?

5. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

I hope Nokia will not sell its mobile devision, man i dont want a phone running Android os!

10. reten

Posts: 43; Member since: Apr 03, 2013

So what phone do you use now

14. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

I use a N9, have also 3 droid devices and after these 3 droid devices i will never buy a droid device again! Android is ot the os for me, to slow and laggy with a lot of issues! Even WP performs better than Android.

28. TROLL

Posts: 4851; Member since: Apr 13, 2012

Jellybean is on par with Wp8 along iOS! Even iOS is much better than Wp8. I'm stuck here using the "Bing useless" search engine. I every time have to rely and use "Zune" "GOD That really sucks" all the major apps are available on iOS and Android. I'm using the L920, whenever I have to search for something I have to go right back which is a pain staking. The only great thing about this phone is taking great photos ®

34. the_best

Posts: 139; Member since: Oct 14, 2012

you can switch to googles searchengine in WP if you want.

13. boosook

Posts: 1442; Member since: Nov 19, 2012

You won't, because Nokia will sell its mobile division for sure, but to Microsoft. They cannot survive without producing an Android phone, but they'll never make one because of Microsoft's influence on Nokia. So the logical consequence can be only one: Nokia will sell the mobile division to Microsoft, that's what we knew from the beginning.

20. alterecho

Posts: 1106; Member since: Feb 23, 2012

I shudder to think of that.

36. MartianMe unregistered

And that will be the end of a great empire .... so sad :(

50. dre786

Posts: 46; Member since: Nov 10, 2012

you are so maD

27. TROLL

Posts: 4851; Member since: Apr 13, 2012

Google and Android does not need that cave old age always using a year old specs on there phone company. Looks like no one wants to buy Nokia except for the patents it hold companies would love to. ®

9. techspace

Posts: 1037; Member since: Sep 03, 2012

if the sales aren't satisfactory, they should make android devices as well, because that is the only option they have they can also port their exclusive wp apps to android there are many people who love nokia and pureview...

12. ardavan

Posts: 6; Member since: Jul 03, 2013

"Nokia's cash position has dropped from 4 billion euros to somewhere in the range of 2 to 2.5 billion euros, and that was before Nokia announced that it was planning to spend 1.7 billion to buy out Siemens" Ehmm..no. Didn't you even read your sources? Reuters: "Nokia put its net cash position at 3.7-4.2 billion euros at the end of the second quarter, and said that if the NSN deal had closed in the second quarter, the cash position would have been 2.0-2.5 billion euros." It clearly says that net cash is 3.7-4.2 billion EUR and would be 2.0-2.5 HAD the NSN deal closed in the second quarter. Correct your article.

16. CardiWPfan

Posts: 129; Member since: Sep 12, 2012

Thank you, thank you for summing that up perfectly!!

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