& cplSiteName &

Microsoft Officially Closes Nokia Buy

Sarah Thomas
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        ADD A COMMENT
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   >   >>
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Masergy: It's Time for SD-WAN Options

6|28|17   |   03:09   |   (0) comments


Paul Ruelas, director of network products for Masergy, explains how adding SD-WAN has changed the service mix for his company's customers. In some cases, the change is incremental, enabling more granular customer control. Masergy's newest version, SD-WAN Go, gives up some of those controls for a streamlined version targeting mid-sized customers with the most ...
Women in Comms Introduction Videos
Intel Ushers in the Revolutionary 5G Era

6|28|17   |   5:00   |   (1) comment


5G will bring job opportunities for women in telco and IT, as well as a whole new era of communications for consumers and industries of all kinds, says Caroline Chan, vice president and general manager of the 5G Infrastructure Division at Intel.
LRTV Custom TV
VeEX at ANGA COM

6|27|17   |     |   (0) comments


At ANGA COM 2017, Cyrille Morelle, president and CEO of VeEX, updates Alan Breznick with VeEX's new products and technology. This includes VeSion cloud-based platform for network monitoring, AT2500-3G advanced spectrum analyzer and MTTplus-900 WiFi Air Expert module. He also comments on DOCSIS 3.1 deployment and Remote PHY technology.
LRTV Custom TV
The Overall Objective Is to Win the Game

6|26|17   |     |   (0) comments


SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Does AT&T Deserve Time Warner?
Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
Verizon Takes 'One Fiber' to More Cities
Mari Silbey, Senior Editor, Cable/Video, 6/22/2017
Calix: Russo's Not-So-Overnight Success?
Carol Wilson, Editor-at-large, 6/28/2017
AT&T Expects 5G in Late 2018 or Early '19
Dan Jones, Mobile Editor, 6/22/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.