Light Reading
Nokia's shareholders have voted in favor of a sale of its device business to Microsoft.

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
The 'Ice Bucket Challenge' has been sweeping the world -- so who in the telecom sector has done it?
Not taking Iliad's bid for T-Mobile US seriously? Think again.
Experienced telecom editor Jason Meyers has joined the Light Reading team to focus on some of the hottest emerging sectors in the industry.
Can service providers afford to neglect small businesses in a FTTx, 4G world?
The open source NFV platform meeting in the Valley this week highlights some of the key shifts ongoing in telecom.
Flash Poll
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Be Open to the Freedom of Openness
Kelly Herrell, 8/29/2014
Netflix to FCC: Kill Comcast-TWC Deal
Alan Breznick, Cable/Video Practice Leader, 8/28/2014
Like Us on Facebook
Twitter Feed