# The SBHonline Community Daily > Digerati Discussions! >  >  Microsoft acquired Nokia devices

## Petri

*Nokia stock +46%

*Nokia will now be a cellular network vendor, thanks to the recent buy back of 50% of Nokia Siemens Networks from Siemens, huge 3G/4G patent owner and maps provider (former Navteq).   Considering that the profit from maps was about the same as the profit from devices, and NSN is way more profitable, makes sense for Nokia's future.   NSN is also the company that will own plenty of patents on LTE-Advanced and future network technologies, and the part of Nokia that caused Apple to pay Nokia hundreds of millions instead of going to court forever..

Very similar to what happened in Sweden.  Back in the 90's Ericsson was as major mobile phone manufacturer as Nokia.  Then it failed, the phones became SonyEricsson and eventually a few years ago Sony.  The original Ericsson is now the world leader in building cellular networks.
*
Good luck Microsoft :-)



REDMOND, Washington and ESPOO, Finland  Sept. 3, 2013 * Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokias Devices & Services business, license Nokias patents, and license and use Nokias mapping services.
Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokias Devices & Services business, and EUR 1.65 billion to license Nokias patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokias shareholders, regulatory approvals and other closing conditions.
Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokias Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.
Its a bold step into the future  a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsofts share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services, said Steve Ballmer, Microsoft chief executive officer. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution. 
We are excited and honored to be bringing Nokias incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution, Ballmer said. With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders. 
For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter, said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following todays announcement, Nokia Interim CEO. After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.
Building on our successful partnership, we can now bring together the best of Microsofts software engineering with the best of Nokias product engineering, award-winning design, and global sales, marketing and manufacturing, said Stephen Elop, who following todays announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services. With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.
Nokia has outlined its expected focus upon the closing of the transaction in a separate press release published today.

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## Petri

"Microsoft will also immediately make available to Nokia EUR 1.5 billion of financing in the form of three EUR 500 million tranches of convertible notes that Microsoft would fund from overseas resources. If Nokia decides to draw down on this financing option, Nokia would pay back these notes to Microsoft from the proceeds of the deal upon closing. The financing is not conditional on the transaction closing."

Interesting tidbit.   Nokia is planning acquire Alcatel-Lucent with financial backing from Microsoft?

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## BBT

Hope they do better with this than other acquisitions. Maybe they will need Balmer to assure a smooth transition to the MS culture.

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## Petri

They've already got Elop (who came from Microsoft) and the devices unit was smaller than rest of Nokia.

I wouldn't be surprised if Elop is destined to become the new CEO of Microsoft.


1269567_530332057038620_1830980837_o.jpg

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## Petri

Here in Nokialand Elop has had the nickname of "Flop" and was called a Microsoft trojan horse since he arrived..

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## Petri

MSFT -5%

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## JEK

*Nokia's Stephen Elop: Next Microsoft CEO?*

*Having Left the Software Giant After Running the Company's Profitable Business Division, Elop Returns a Bit of a Hero*












ByJOHN D. STOLL
Enlarge Image






Associated PressNokia CEO Stephen Elop showed off the Lumia 1020 in July.



After three years of trying to repair businesses that proved to be unfixable, NokiaCorp. NOK1V.HE +33.94% Chief Executive Stephen Elop is back at Microsoft Corp.MSFT -4.94% to help shape the legacy of the software giant's longtime boss, and potentially take his job.
Nokia on Tuesday announced the $7 billion sale of an ailing handset business to Microsoft, ending several months of discussions between Mr. Elop and Microsoft Chief Executive Steve Ballmer. The negotiations were the subject of dozens of boardroom deliberations on both sides of the Atlantic.

Upon Steve Ballmer's resignation as Microsoft CEO, the new chief executive will face a company with a much different complexion with Nokia's cellphone business now in the fold. Joann Lublin reports.


Nokia shareholders and many in Finland applauded the move. Shares traded up as much as 48% amid sentiment that it is the best solution for a mobile-device operation that already relied heavily on Microsoft Windows technology.
It is a stark reversal to the chilly reception Mr. Elop has recently weathered in Helsinki, where some had taken to calling him "Stephen Eflop."
Having left Microsoft after running the company's profitable business division, Mr. Elop returns a bit of a hero. He was the only executive in the global handset business to exclusively use the Microsoft mobile platform and Nokia now sells nearly every Windows phone that is sold world-wide.
The table is set for the 49-year-old executive to help Mr. Ballmer pull off an ambitious plan and, in the process, win respect in Microsoft's board room as its directors search for a new CEO.
In an interview Tuesday, Mr. Ballmer said the public shouldn't read too much into what the deal means for Mr. Elop's future, but acknowledged his longtime associate has gone from being an external candidate to an internal candidate.
The immediate goal is to work hand-in-hand with engineers and marketing staff at Microsoft to put the pieces in place to truly compete with rivals. The executives are eager to develop a legitimate third ecosystem capable of taking on players likeSamsung Electronics Co., 005930.SE -1.04% Apple Inc., and Google Inc.,GOOG +1.41% which are miles ahead thanks to iOS and Android.
If he fails, Mr. Ballmer's legacy will be dented. Mr. Ballmer has been criticized for not keeping up in a fast-moving industry. People involved in the Nokia deal say the play for a struggling handset business is one last effort to prove his mettle.
In choosing Mr. Elop to lead the integration of the new business, Mr. Ballmer selects a respected ally. During the interview, Mr. Ballmer said he values Mr. Elop as a partner. The Canadian-born executive was one of the few people he called before announcing his coming retirement.
Mr. Ballmer also picked an executive who hasn't strayed far from home.
Since joining Nokia in 2010, Mr. Elop has taken commercial flights between Helsinki and Seattle. He essentially lived out of a suitcase to balance the demands of turning around a crumbling business and raising teenage daughters whom he didn't want to uproot.
Mr. Elop isn't a stranger to tough decisions.
He made waves almost immediately after starting at Nokia. He set to work on a plan that would lead to tens of thousands of job cuts and a downsizing of Nokia's treasured R&D department. He sold key assets, including the seaside headquarters near Helsinki and closed the last remaining handset factory in Finland.
*Nostalgia for Nokia*

Photos
View Slideshow



Victoria Castañeda/FlickrThe Nokia 1100, described as the World's most popular phone ever.



*Noting Nokia's History*

Timeline
View Graphics








He also changed the focus. Earlier this year, after an extensive rebuild of Nokia Siemens Networks wireless division, Mr. Elop paid about $2.2 billion to buy out Siemens AG. Nokia now looks a lot like Sweden's Ericsson, which exited handset manufacturing a couple of years ago and is now making big profits selling infrastructure.
The results of the handset strategy have been less than stellar.
Nokia's cash burn and losses have narrowed, but it only controls about 3% of the global smartphone market and 14% of a total handset market. While many analysts have blamed Nokia's demise on a weak Microsoft operating system, criticism can be aimed at Nokia executives who underestimated rivals.
In recent months, it became increasingly clear the Windows phone strategy was running into a roadblock. No matter how good Nokia's new Lumia smartphones were, other players in the industryparticularly Samsung Electronics Co.had deeper pockets that allowed them to pour far more money into marketing and discounting smartphones than Mr. Elop has initially calculated.
Samsung's market share, fueled by the popularity of both the Galaxy handset and the Google Inc. Android operating system it runs, has skyrocketed as Nokia's plummeted, with the Korean company overtaking Nokia at No. 1 in 2012.
Mr. Elop has done his best to paint a positive picture of Nokia's phone business, pointing out that Lumia volumeswhile smallhave been growing, with sales increasing 32% to 7.4 million in the second quarter. Samsung however, sold nearly 10 times as many smartphones in the first three months of 2013.
The clock is now ticking on Mr. Elop's attempt to catch up.




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## Petri

> "Microsoft will also immediately make available to Nokia EUR 1.5 billion of financing in the form of three EUR 500 million tranches of convertible notes that Microsoft would fund from overseas resources. If Nokia decides to draw down on this financing option, Nokia would pay back these notes to Microsoft from the proceeds of the deal upon closing. The financing is not conditional on the transaction closing."
> 
> Interesting tidbit.   Nokia is planning acquire Alcatel-Lucent with financial backing from Microsoft?



http://www.ft.com/fastft/308073/noki...en-15.6bn-deal

Nokia acquires Alcatel Lucent for 15.6 billion euros.  Hopefully ALU has had enough troubles in the past years and the organization has been trimmed for the worst slack, and Nokia has some experience with trimming the Siemens Networks organization already.

There's a rumour that Microsoft (or someone else) will acquire Nokia's maps (former Navteq) so Nokia will be pretty much out from the consumer business.

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## JEK

*Microsoft Lays Off Nokia Employees, Exits Consumer Phone Business*Wednesday May 25, 2016 3:22 AM PDT by Tim Hardwick
Microsoft has laid off hundreds of employees tied to its smartphone business, as the company finally exits the consumer phone market and attempts to streamline its worldwide mobile division (via _The Verge_). 

The move will impact up to 1,850 jobs worldwide, said Microsoft's head of Windows and devices Terry Myerson, while up to 1,350 of the positions will be in Finland. The cuts are expected to be completed by the year's end. 


The move signals the final nail in the coffin for Microsoft's Nokia business, which the company acquired under former CEO Steve Ballmer's management for $7.2 billion in 2014. Today's announcement will see $950 million written off, adding to the $7.6 billion the company wrote off last year when it cut 7,800 jobs to refocus its Windows Phone plans. 

Microsoft is now shorn of almost all of its 25,000 former Nokia employees, and will only retain a small number in R&D roles. Last week, the company announced it was selling off its feature phone business to FIH Mobile, a subsidiary of Foxconn, for $350 million. 

All indications point to an end of Microsoft's Lumia phones and a focus on a single Surface phone, with Myerson promising "great new devices" in an internal memo to employees, although he withheld any specific timeframe. The immediate focus for Microsoft and its new CEO, Satya Nadella, is more likely to remain on bringing the company's software and services to iOS and Android devices, rather than risk another consumer phone failure anytime soon. 

Microsoft has been scaling back its consumer phone ambitions ever since its ill-fated Nokia mobile acquisition two years ago. Nokia meanwhile has shown far loftier ambitions, last month announcing its acquisition of French health tracking company Withings for an estimated $192 million, as it seeks to expand into the consumer electronics market while maintaining its networking and commercial VR business.

_Tags: Microsoft, Windows Phone, Nokia_


74 comments

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## Petri

Nokia's chairman of the board said well earlier this year; "Over 99% of our more than 100 000 employees did not carry a Nokia badge just three short years ago"


While I think Microsoft Windows Phone did have some new ideas and it would have been great that have a tripoly instead of duopoly, it's hard not not see this coming with Microsoft Mobile Phones.

Overall the move was great for Nokia itself.  The phone business was stuck with the old technology way before Microsoft became involved and while the drop was huge, they still managed to get out of it and even got paid for it.  Acquiring Alcatel-Lucent and the other companies will require plenty of cleaning, that includes layoffs, the company is still well and alive.  If they had continued the phone business, probably not.

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## Petri

I wonder what this will bring to the table..  

http://www.anandtech.com/show/10333/...lets-to-market


In Africa while they had Nokia signs everywhere years ago, they had turned into Samsung signs a few years ago and last year they were all Huawei signs.  I guess there's some special Nokia-love somewhere in Asia why Foxconn see's the brand is good enough to put back alive.

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## stbartshopper

When the growth stops, companies seem to do lots of mergers and acquisitions, searching for greater economies of scale, new avenues for growth, cash flow, and it sems sometimes ego and ways to spend their money and short term earning spurts. It is always occurring in the industry I retired from - pharmaceuticals.

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