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Nokia Sale to Microsoft Expected to Close This Week

Dan Jones
4/21/2014
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Nokia's $7.36 billion sale of its device business to Microsoft is expected to close this week.

Nokia Corp. (NYSE: NOK) announced Monday that the deal is expected to close on April 25. The deal was announced on September 3 last year and delayed while the companies waited for approval from Chinese authorities this year. (See Euronews: Nokia Handsets Sale Delayed, Euronews: Nokia Handsets Sale Delayed and Nokia: It's Really Happening.)

Nokia Networks CEO Rajeev Suri has been tipped as a main candidate to head up the device business in its post-Nokia incarnation. (See Euronews: Suri Slated for Nokia Top Job.)

A report suggests that Nokia may also have its name changed after the transition. A leaked letter to Nokia's suppliers suggests that the company will be renamed "Microsoft Mobile."

So, as soon as next week, one of the world's iconic cellphone brands could cease to exist. Aside from the NSN infrastructure unit, Nokia is hanging on to its location services business and its trove of patents.

— Dan Jones, Mobile Editor, Light Reading

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DHagar
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DHagar,
User Rank: Light Sabre
4/23/2014 | 1:38:53 PM
Nokia Sale to Microsoft Expected to Close This Week
@Kruz, that makes great sense; they need to find a way to get value from it.  Clearly, they need a very strategic approach.
Kruz
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Kruz,
User Rank: Light Sabre
4/23/2014 | 3:10:31 AM
Re: Nokia Sale to Microsoft Expected to Close This Week
While I agree Microsoft should focus on its software suites (as it is hindering its handset business at this stage), it still needs flagship handsets to promote it.

And the problem is that for now, WP is mainly Nokia as it is capturing the biggest share of the Windows phones being sold with Samsung focusing on Android and trying to push Tizen and other Windows running devices having minimal market share.

WP is just not going to fly and MSFT needs to step in. Maybe at a stage when Windows Phone OS will be strong enough, MSFT could then consider letting go of its handset division as HW was never in its real core DNA.
DHagar
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DHagar,
User Rank: Light Sabre
4/21/2014 | 7:39:23 PM
Nokia Sale to Microsoft Expected to Close This Week
@FakeMitchWagner, I fully agree.  My point was that if they are going to get the ROI from this they either need to maximize the devices (which is picking the low hanging fruit - with less returns), or strategically position themselves with the new patents.

I fully agree that they need to emphasize software and services and reposition themselves strategically in the market.  I believe they have lost their way.  I think that is the only way they will regain their competitive market position.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
4/21/2014 | 7:16:10 PM
Oy
Microsoft reportedly plans to rename Nokia Oyj to Microsoft Mobile Oy.

Oy means company in Finnish. In Yiddish, it means "Oy."

 
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
4/21/2014 | 7:13:49 PM
Re: Nokia Sale to Microsoft Expected to Close This Week
Do they really need to be a strong device player, or should they just tend to their strengths in software and services?

I see the Nokia acquisition as a failure of the Ballmer administration. Microsoft should pick whatever assets it can use from Nokia -- patents first among them -- and sell the rest for whatever it can get. The handset business should be first on the block. 
DHagar
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DHagar,
User Rank: Light Sabre
4/21/2014 | 4:48:43 PM
Nokia Sale to Microsoft Expected to Close This Week
@DanJonesLRMobile, agreed that they need to be.  Do you think they have the ability to be?
DanJonesLRMobile
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DanJonesLRMobile,
User Rank: Light Sabre
4/21/2014 | 4:37:55 PM
Re: Nokia Sale to Microsoft Expected to Close This Week
THey haven't been a strong device player so far but they NEED to be.
DHagar
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DHagar,
User Rank: Light Sabre
4/21/2014 | 4:24:50 PM
Nokia Sale to Microsoft Expected to Close This Week
Dan, I am wondering if the patents won't be the greatest asset?

I can't imagine that Microsoft has the capability to be a strong player themselves in the mobile market, so it seems that the patents, and possibly the network itself, may be the greatest value to Microsoft.

Amazing prospect of Nokia no longer existing!
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