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

0. phoneArena posted on 03 Jul 2013, 09:29

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...

This is a discussion for a news. To read the whole news, click here

posted on 03 Jul 2013, 10:17 5

15. jackhammeR (Posts: 1548; Member since: 17 Oct 2011)

as usual PA spreads some stupid rumors and the author of this crapticle doesn´t even know what he´s writing about. Is it so hard to read with understanding?

posted on 03 Jul 2013, 10:24

17. jedpatrickdatu (Posts: 169; Member since: 24 Jan 2013)

By "handset business" does this mean Nokia's low-end phone business? Or will the Lumia business be sold too?

posted on 03 Jul 2013, 10:28

19. KINGJUAN27 (Posts: 210; Member since: 02 Jul 2012)

Get your facts straight Michael H! IDK if your articles are BS, biased or you're just plain stupid. Pfft!

posted on 03 Jul 2013, 11:41

33. FISTFLY (Posts: 27; Member since: 03 Jul 2013)

So this is not true? Can you confirm something?

posted on 03 Jul 2013, 12:51 1

37. MartianMe (unregistered)

he's all of those things...

posted on 03 Jul 2013, 10:33 2

21. Stoli89 (Posts: 333; Member since: 28 Jun 2010)

...or...someone on Wall Street benefits from this story by trying to avoid an iminent short squezze.

Do you really think the BoD of Nokia would approve the purchase of 49% of NSN without looking at the underlying cashflow to finance this approach? If cash is so limited, do you really think the BoD would approve of this plan without having a buyer for the other business already in hand. If it did, don't you think it would be material to legally disclose this fact beforehand to the investors?

The other "story" could be that Nokia's cashflow is actually improving and PROJECTED to continue to improve. That management is confident in these projections and willing to use a portion of exisiting reserves to take full ownership of a business that is cashflow ACCRETIVE!

On top of this, Nokia is already carrying the overhead of NSN (all employees, etc) as the controlling 51% entity. Clearly, the advantages of a full consolidation must also be considered.

Lastly, what if a Private Equity firm or consortium of firms are willing to purchase full ownership after NSN's consolidation under Nokia. The previous 49% sale wasn't going to help a PE firms approach...but now that Nokia will have 100%...maybe...just maybe...Nokia already has an offer at a very nice return for its efforts.

IMHO, the story your floating is for benefit of the short community.

posted on 03 Jul 2013, 13:45 1

42. UrbanPhantom (Posts: 949; Member since: 30 Oct 2012)

The story is likely to be false, and was put out by those who are shorting Nokia, the likes of which have been caught off guard by Nokia's talks with Microsoft and also their NSN consolidation purchase. They are looking to avoid being smashed before Q2 results are released on July 18th, and spreading myth about cash burn is designed to help them to buy extra time to exit their short positions...

posted on 03 Jul 2013, 10:43 1

23. Shrihari (Posts: 102; Member since: 29 Jan 2013)

nokia before closing yourself please make one try with android....

posted on 03 Jul 2013, 11:38

32. FISTFLY (Posts: 27; Member since: 03 Jul 2013)

Don't do that, Nok!!

posted on 03 Jul 2013, 14:35 1

44. b1acktiger (Posts: 223; Member since: 19 May 2012)

Existence of Nokia is a need for the users to keep the smartphone market hot and competition among could benefit the users and more innovation. Duopoly of Apple and Samsung is hurting now.

posted on 03 Jul 2013, 21:07 1

51. xtremesv (Posts: 298; Member since: 21 Oct 2011)

Nokia, once a smartphone titan, punished for its lack of innovation and killed off by Microsoft.

posted on 03 Jul 2013, 22:26

52. Edmund (Posts: 656; Member since: 13 Jul 2012)

As they've already stated, it will fund the acquisition with a bridge loan, probably from the sale of Convertible Notes.
Siemens is a future cash-cow that could prove to be extremely profitable for Nokia. Its potential growth is seemingly limitless, particularly when you think about the fact that countries like the USA, among others, are still reliant on an ageing DSL network. To this end, high-speed broadband (in the true sense of fiber-to-the-home) is the next logical step toward achieving the Holy Grail of multifarious communication - convergence.
Let's also not forget who their major partner is - Microsoft - and If you think they don't have $1.7 billion to spend on a few convertible notes, then sadly you're even more dellusional than these so called "expert analysts".

posted on 04 Jul 2013, 12:15

55. 7thspaceman (Posts: 1584; Member since: 14 Feb 2011)

Folks there could be some truth in this because maybe the main reason Microsoft may have backed out of the deal to buy Nokia not long ago was Nokia was tied up with Siemens. Siemens may have priced their share Of Nokia so high that Microsoft walked out the deal plus the fact Microsoft did not want to deal with Siemens. Now that Nokia is free now Microsoft can seal the deal and buy Nokia and I hope that Microsoft does Buy Nokia because Microsoft has no guarantee that it's other OEM partners will continue to make Windows 8 smart phones because they do not sell as well as Apple Iphones or Android smart phones

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