& 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
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
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 Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
LRTV Documentaries
OPNFV Summit: Key Takeaways

6|22|16   |   03:28   |   (0) comments


MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
LRTV Huawei Video Resource Center
Bringing Ultra Broadband to the South Pacific

6|22|16   |   7:55   |   (0) comments


At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
LRTV Custom TV
Juniper's NFV Platform

6|22|16   |     |   (0) comments


A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
Women in Comms Introduction Videos
Infinera: The Glass Ceiling's Been Broken

6|22|16   |   4:34   |   (0) comments


Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
LRTV Custom TV
RAD Demonstrates SD-WAN Functionality at BCE 2016

6|22|16   |     |   (0) comments


In conjunction with Versa Networks, RAD demos a joint solution for SD-WAN implementation. The solution uses RAD's ETX-2i, a vCPE platform integrating a powerful IP and Carrier Ethernet NID/NTU with a field-pluggable x86 NFV module that runs Versa's FlexVNF for SD-WAN functionality. The demo implements SD-WAN over a simulated service provider footprint by deploying ...
LRTV Custom TV
Radware on Virtualizing Network Security

6|21|16   |     |   (0) comments


Radware's Michael O'Malley highlights the benefits for service providers of virtualizing network security.
LRTV Huawei Video Resource Center
Huawei 2016 UBBS World Tour: Singapore

6|21|16   |   02:39   |   (0) comments


Highlights from Huawei's UBBS World Tour event in Singapore.
LRTV Custom TV
The FlowBROKER Solution

6|21|16   |     |   (0) comments


During a demo at the Big Communications Event 2016, Accedian director of product line solutions Greg Spear demonstrates how the FlowBROKER distributed packet capture solution (part of Accedian's SkyLIGHT platform) can be used to troubleshoot and resolve QoE issues.

FlowBROKER is the industry's first lossless remote packet capture solution, which uses ...

LRTV Documentaries
BCE 2016: Dell & the New World Order

6|21|16   |   22:48   |   (0) comments


Dell's Jim Ganthier on how the very essence of enterprise is being affected by digital disruption – and how the cloud can help companies find a path forward.
LRTV Documentaries
BCE 2016: The CSP of the Future

6|20|16   |     |   (0) comments


Traditional telecom operators have been adopting new ways of doing business from the IT sector and emulating web-scale companies in their technology adoption. Are these strategies succeeding? A panel of experts at BCE considered the evidence...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
FCC to Vote on 5G Spectrum on July 14
Dan Jones, Mobile Editor, 6/20/2016
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
Twitter Buys Magic Pony... Not That Kind
Mari Silbey, Senior Editor, Cable/Video, 6/20/2016
AT&T Settles on LTE for Cellular IoT
Dan Jones, Mobile Editor, 6/22/2016
Google Fiber Buys Webpass in Wireless Play
Iain Morris, News Editor, 6/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Mark Dzuban, president and CEO of SCTE/ISBE, sits down with Steve Saunders in Light Reading's New York office to discuss the society's Energy 2020 campaign, including its mission to benefit the environment, enable economic benefits and the key challenges facing cable operators wanting to reduce energy consumption.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.