Light Reading
Microsoft plans to add more services to Nokia phones right away, and is targeting growth in feature phones in emerging markets.

Microsoft Officially Closes Nokia Buy

Sarah Reedy
4/25/2014
50%
50%

Nokia's devices division is now officially part of Microsoft, wrapping up a deal first announced last September and giving Microsoft its own device business for its Windows Phone operating system.

Microsoft Corp. (Nasdaq: MSFT) confirmed it has completed its more than $7 billion acquisition of the Finnish smartphone maker on Friday, enabling it to "accelerate its share of smartphones and feature phones in developed and emerging markets, and increase its role as a devices and services company." (See Nokia Sale to Microsoft Expected to Close This Week, Euronews: Nokia Handsets Sale Delayed and Nokia: It's Really Happening.)

Nokia said in a release that the total transaction price is expected to be slightly higher than the previously announced €5.44 billion ($7.52 billion) after final adjustments have been made.

The two companies first became partners early in 2011. Even though Microsoft has licensing deals in place with others such as Samsung Corp. and High Tech Computer Corp. (HTC) (Taiwan: 2498) -- deals it hopes to continue -- Nokia already accounts for 90% of the Windows Phone devices on the market.

In addition to its phone business, the software giant is acquiring Nokia's design team, most of its manufacturing and assembly facilities and operations (minus manufacturing plants in India and South Korea now excluded from the deal), and sales and marketing support. It will also license its patents.

According to Tom Gibbons, the Microsoft corporate vice president who is responsible for the Nokia integration, the combined company already has a joint operating plan established and Nokia feature phones will start to have more Microsoft services on them right away. It is targeting growth in emerging markets where Android dominates.

Microsoft didn't delve into other specific plans for Nokia, but a leaked letter suggests it will be leaving behind the once iconic Nokia name in favor of "Microsoft Mobile."

Nokia is also expected to announce Rajeev Suri as CEO of what's left of the company, including the NSN infrastructure unit, location services business, and its patents, when it shares its first-quarter earnings on Tuesday.

— Sarah Reedy, Senior Editor, Light Reading

(53)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 6   >   >>
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
5/8/2014 | 8:27:52 AM
Re: the name
> *tech elite in Europe and Asia follow the tech elite of Americas*

Relevant xkcd.

Besides, that statement, however true, became less true after the Snowden revelations -- when Europeans, South Americans, and others fled the American cloud like it was a burning movie theater.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
5/8/2014 | 8:25:28 AM
Re: the name
The eBay/PayPal comparison is really apt here.  In eBay's case, PayPal was making tons of money off of eBay, so may as well buy PayPal and make that money that eBay should have been making in the first place.

Ditto for Microsoft/Nokia, perhaps.  Windows phones are Nokia phones, so why not make ALL of the money on the table for Windows phones?  At least, if the ROI is right.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/2/2014 | 9:43:16 AM
Re: the name
@Joe: In terms of technology trends, tech elite in Europe and Asia follow the tech elite of Americas, so I am not sure how gaining market share in Asia will help gaining market share in America. Or am I missing something here?
briandnewby
50%
50%
briandnewby,
User Rank: Light Sabre
5/1/2014 | 4:31:17 PM
Re: the name
Joe, I don't know who I would buy.  I think they'd be better off assembling their own, ala Amazon.

The only thing I can get to is that the intellectual property must have had great value.  

The other thing to consider, I guess, aside from the international thought is simply the new idea of new market space for devices.  Microsoft could leverage all of this into some new Internet of Things concept that creates new value and makes Microsoft look visionary.

Of course, that's what analysts wondered when E-Bay bought PayPal.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
4/30/2014 | 11:03:03 PM
Re: the name
Interesting (and obscure -- which always makes for interesting) example, brian!

In any case, Microsoft has clearly been in the market for a mobile company... My anti-Nokia sentiments aside, who better to buy than Nokia if you're Microsoft?
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
4/30/2014 | 10:59:55 PM
Re: the name
OTOH, when all you read (and I'm not making this assumption of you, but I'm assuming it's true of many visitors here) are American-based tech news sites, then yes, eventually you start to believe that Microsoft is the devil; that Mark Zuckerberg does horrible, disgusting things with the world's personal data in the middle of the night; that every Google product ever is a new Wonder of the World; and that Steve Jobs was the best person ever except sometimes when he was the worst person ever.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
4/30/2014 | 5:45:06 PM
Re: the name
I would actually disagree with that. I think people have already soured on the 'Windows' mobile & pphone moniker. Microsoft in the name wouldn't make too much of a shift in my mind.
briandnewby
50%
50%
briandnewby,
User Rank: Light Sabre
4/30/2014 | 12:44:03 PM
Re: the name
I do agree about the international opportunities.  I'm not convinced that the Nokia purchase will help Microsoft there.  It may.  Diebold, for instance, got into the voting machine business by buying an equipment company in Brazil and hoped to transfer that to the United States, only to find the technology wasn't robust enough.  Diebold then bought Global Election Management for the current voting machines in use and has since sold that business for nearly nothing.

That's only one, and rather odd example, and it illustrates the technology coming this way and not that way, internationally, but overall I think buying domestic equipment to create an international beachhead is risky as well.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
4/30/2014 | 12:06:41 AM
Re: Nokia's Indian plant
harles: China and Vietnam makes sense. However India is imposing certification requirements on consumer electronics: www.enterpriseefficiency.com/author.asp?section_id=2405&doc_id=272965& This would raise difficulty for phones manufactured in Vietnam and China to be readily sold in India.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
4/29/2014 | 11:19:30 PM
Re: What's in a name?
Microsoft Bing : Google Search :: Google Buzz : Twitter

Except Bing Maps is better than Google Maps (at least, since Google "updated" its Maps platform).
Page 1 / 6   >   >>
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (0) comments


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (0) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed