Nokia's handset biz. sold to Microsoft for $7.2 billion: The death of a once beloved brand or the rise of a new world order?

[calguyhunk]

Two years after hitching its fate to Microsoft's Windows Phone software, a withered Nokia collapsed into the arms of the U.S. software giant, agreeing to sell its main handset business for 5.44 billion euros ($7.2 billion).

Nokia will also license its patents and mapping services to Microsoft. Nokia shares jumped 45% on news of the deal.
The purchase is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft. It will represent the second most expensive acquisition in Microsoft's 38-year history, ranking behind an $8.5 billion purchase of Internet calling and video conferencing service Skype.

:view: Read More on: Reuters.com, BBC.co.uk and AllthingsD.com

Edited September 3, 2013 by calguyhunk

[XorRanger]

Now this is bad.

Good bye freedom, welcome autocracy.

Mtcheww.

I Guess soon Microsoft will want to acquire everybody. ;-(

[Alanon]

I think Microsoft really wanted an assembly line for shitty Windows Mobile phones, and Nokia was willing to sell. That being said, I don't know if any of the parts are still made in Finland, but I can't see that happening for much longer. Nokia has always been overpriced due to that fact, and I'm guessing Microsoft will cut their expenses to a S©amsung-like model.

Also, has no-one else really wondered how come MS had no response to Apple? I guess they are re-orienting themselves towards a tablet/phablet centred world. There have been stories circling the net for years how gamers are the lifeline of PC's... I'm beginning to think that's going to become true in a matter of a few years.

[calguyhunk]

Firstly - This means the final Goodbye to any remaining fantasies 'bout owning a Nokia Droid sometime in the future :(

Secondly - I wonder where Blackberry is going next? :think:

[calguyhunk]

... has no-one else really wondered how come MS had no response to Apple? I guess they are re-orienting themselves towards a tablet/phablet centred world.

Apple not only has a cult following, but also legions of Kool-Aid drinking tech-illiterates who've made it the brand that it is today ;)

MS will never get there. They do have their fanbois, yes, but to most of the Windows PC users over the years, they've only been using (some would say tolerating) PCs since they couldn't afford Macs. Not because they're in love with 'em. Somehow, there's a feeling amongst the masses that the Mac is the ultimate in personal computing :o

Kinda' like Kia users who're only too eager to jump ship if they were to get a Bimmer/Merc mid sizer for ~20 grands ;) There's no way a Kia or a Hyundai will be able to sell a 50 grand vehicle no matter how much effort and money they put into R&D and marketing - and no matter how powerful and feature-rich they make those things. :(

Which is exactly why PC manufacturers are having so much trouble selling overpriced touchscreen Win8 ultrabooks with all kinds of "value additions" (read: weird contraptions) :tehe:

There have been stories circling the net for years how gamers are the lifeline of PC's... I'm beginning to think that's going to become true in a matter of a few years.

That's true, but only to a certain extent ;) Most geekboys have a gamer streak to them, and they are in general most active on the net. Also, gamers as a community are extremely active anyways and that's why you see the number of stories related to gaming that you do. :P

But think of high voltage (if niche) productivity, designing, 3D rendering, gfx editing, web-hosting etc, and PCs are still your only goto. I don't see that changing anytime soon. Certainly not as long as they don't find a way to plonk in the most powerful of hardware (CPU, GPU, storage) into those tablets and yet make 'em more power efficient - not to mention upgradeable. :)

Edited September 3, 2013 by calguyhunk

[smallhagrid]

Nokia is gone.

The End.

[DKT27]

While this comes as a surprise, it's probably expected. The reason it's a surprise is that I was hearing things about Nokia actually starting to do well. The reason it's expected cause Nokia doesn't have lot of money to run the business.

It is, however, quite sad to see.

Few things I'm concerned about:

• No Nokia Android.
• Google bought Motorola, Microsoft bought Nokia. Who did a better investment?
• What will happen to dumb phones / cell phones? Which has been bread and butter of Nokia since years.
• What if Microsoft actually succeeds after this acquisition? :mellow:
• Why the f*ck didn't Nokia give Android business a try? If Nokia would have started making Android phones like 5 years ago, it would have been in the top 3 smartphone companies out there.
• Microsoft consumes another company.

[mazigh]

Good News Overall especially for Microsoft, but I personally wanted to see Nokia an independent company with the ability to produce Droids

Edited September 3, 2013 by mazigh

[software182]

...

Edited August 22, 2019 by software182

[FreeRyde]

A marriage of necessity.

Both companies were out of other options.

[alvester]

While this comes as a surprise, it's probably expected. The reason it's a surprise is that I was hearing things about Nokia actually starting to do well. The reason it's expected cause Nokia doesn't have lot of money to run the business.

It is, however, quite sad to see.

Few things I'm concerned about:

• No Nokia Android.
• Google bought Motorola, Microsoft bought Nokia. Who did a better investment?
• What will happen to dumb phones / cell phones? Which has been bread and butter of Nokia since years.
• What if Microsoft actually succeeds after this acquisition? :mellow:
• Why the f*ck didn't Nokia give Android business a try? If Nokia would have started making Android phones like 5 years ago, it would have been in the top 3 smartphone companies out there.
• Microsoft consumes another company.

THE FACTS:

Microsoft has announced intentions to purchase Nokia’s devices and services unit

Including licenses to all of Nokia’s patents for all products but NOT ownership of the entire patent portfolio

Microsoft will however acquire 8500 design patents

The bid is $7.2 Billion

Purchase is due to close in Q1 2014 subject to shareholder approval and regulatory agreement

Includes the transfer of staff including Elop

Elop will be VP of the new “expanded” devices unit initially working parallel to Julie Larson-Green’s team, but eventually she will join his group

Elop is now, as he always was, a candidate for the Microsoft CEO position

Once the purchase is complete, the Nokia brand will not appear on smartphones (feature phones limited to 10 years)

Microsoft have purchased the Lumia and Asha trademarks

Microsoft has NOT purchased the HERE services group, will be a customer for the next 4 years

There are no announced changes to the operating system team

It is planned that one set of supporting services will be utilised across all Microsoft devices, this will eventually include Nokia’s services (other than HERE)

No significant plans have been announced in regards to moving teams geographically, although some minor shuffling is to be expected

PS: Nokia didn't sell its brand. Its still owns NSN, location and mapping services. While Microsoft will license the Nokia brand under a 10-year agreement, the company will only be able to use the name on Series 30 and Series 40 devices, and Nokia will be subject to a non-compete clause preventing it from producing any mobile devices under the Nokia name through 31 December 2015. Microsoft will acquire the rights to the Asha and Lumia brands as part of the deal.