Light Reading

Nokia: It's Really Happening

Ray Le Maistre
11/19/2013
50%
50%

Even though it was never going to be kicked out by the shareholders, there is something quite shocking about what has happened today in Espoo, Finland.

At an Extraordinary General Meeting, the shareholders of Nokia Corp. (NYSE: NOK) approved the sale of "substantially all of Nokia's Devices & Services business" to Microsoft Corp. (Nasdaq: MSFT). More than 99 percent of the votes cast at the meeting were in favor of the €5.44 billion ($7.36 billion) deal. (See: Nokia Sells Devices Business to Microsoft .)

Unless there are any regulatory issues, by the end of March, Nokia will no longer be making mobile phones. It will primarily be a mobile network infrastructure and managed services provider. Nokia Solutions and Networks (NSN) will generate the majority of the company's revenue. The other parts of the business will be HERE (which deals in location-based services) and Advanced Technologies (which looks to use Nokia's patent portfolio).

We have already covered the ins and outs of this deal, and we'll have to wait and see what Microsoft actually does with the device business. (See: The Nokia/Microsoft Conspiracy Theory.)

Still, something just does not seem right. It just doesn't seem right at all.

— Ray Le Maistre, Editor-in-Chief, Light Reading

(13)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
DanJones
50%
50%
DanJones,
User Rank: Blogger
11/21/2013 | 12:44:29 PM
Nokia>>>X-Box
If I was Microsoft I would be thinking of ways to build an ecosystem round the X-Box. There must be ways to link tablets and smartphones more closely to the X-Box. That would make the most sense to me.
pzernik
50%
50%
pzernik,
User Rank: Light Sabre
11/20/2013 | 2:40:54 PM
Re: The shock factor
Don't forget that MS is getting the manufacturing, distribution, design, operations, sales and marketing teams from Nokia as part of the deal.  They obviously see value in the efficiencies gained from these teams, especially the manufacturing and distribution into markets with higher upside than the US market.
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
11/20/2013 | 11:39:18 AM
Re: The shock factor
How do you see its future? Was it just acquired for its patents? I see no value in having a Microsoft branded phone while Nokia will always be a brand people can related to and is synonym to heavy duty hardware.

Once thing worth mentioning is that for the first time, the Lumia division, which accounts for the biggest share in windows phone worldwide is actually doing well( figures are low still but on the rise, YOY). And Windows have been famous for doing it right the 3rd time, look at the Xbox for instance.
RitchBlasi
50%
50%
RitchBlasi,
User Rank: Light Sabre
11/20/2013 | 9:56:48 AM
Re: Shareholders
Just got up and checked e-mail - LOL.  Great start to the morning.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
11/20/2013 | 8:13:48 AM
The shock factor
On a financial level, you could say this is the best deal that Nokia shareholders would have got, given the circumstances, so it can be viewed as "a good deal" that makes Nokia shareholders "happy".

BUt, from my personal perspective, there's something not quite right. Whereas RIM/BlackBerry just looks like a classic lesson in poor management, the Nokia situation feels different. There is no doubt that the company failed to react quickly enough to the smartphone boom, but the decisoins made since then... well...

It'll make for an interesting case study.

As will what happens next, no doubt - and I mean, what happens next with Nokia's handset division at MSFT and what happens next for what is left of Nokia. Now the onus is on NSN to bring home the bacon.
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
11/20/2013 | 5:21:54 AM
Re: Shareholders
Nokia could have chosen another alternative few years ago, but today this is the best they can get out with. It is true Elop guided the company into that direction by tying it to Microsoft with no other choice; it could have easily adopted Microsoft along with Android, but then again, it could have been where HTC is now. Shareholders are happy and it's been a while where they only had to deal with negative news.
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
11/20/2013 | 2:36:12 AM
Re: Shareholders
@Ritch

 

I think the saying goes...

  "... if you can't beat em ...

             get paid ..."
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
11/20/2013 | 2:33:52 AM
Re: Quitting while they're ahead
I agree, and I'm not a fan of MS either, but what choice do the Nokia shareholders really have.  I think the stragegy to put everything into one last try was a good strategy but maybe it was the wrong plan but either way it didn't pan out.  But whether it was intentional or not, seeing how the deal went down, its hard not to cry foul.  Setup for sale or using connections to forge a softer fall?  I doubt we'll ever really know.  My guess, a bit of both, hedging both and Mr Elop keeps on getting paid (and well).
R Clark
0%
100%
R Clark,
User Rank: Blogger
11/19/2013 | 9:11:38 PM
Quitting while they're ahead
I commend Nokia for getting out with something for their shareholders.  After ignoring  the iPhone, missing the Android opportunity and nailing their fate to Windows they didn't have much choice. Better than going down the BlackBerry path to oblivion. 

The Elop deal seems pretty scandalous though, even by the generous standards of CEO compensation.



 
RitchBlasi
50%
50%
RitchBlasi,
User Rank: Light Sabre
11/19/2013 | 4:56:37 PM
Shareholders
Could be shareholders were afraid of losing everything and figured MS had deep pockets and they could salvage some coin. You have a few financial analyst saying this is good for both companies...you know how it goes Dan.
Page 1 / 2   >   >>
More Blogs from Shades of Ray
Thursday February 26, 2015 will stand out in the US communications calendar as an historic day following the reclassification of broadband and imposition of net neutrality rules.
JDSU channels the spirit of the Roman Empire as it announces its post-split optical and assurance units will be called Lumentum and Viavi.
It's Deutsche Telekom's Capital Markets day on February 26 & 27, and I'm expecting some big news around its SDN and NFV strategy.
Are you all strapped in? Then let's talk 5G, NFV, IoT, security and anything else that rhymes with LTE… oh, and tapas…
There are some interesting names on the attendee list at the FTTH Council Europe event in Warsaw, Poland.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.