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Microsoft To Buy Nokia's Handset Business For 5.44 Billion Euros

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http://uk.reuters.com/article/2013/09/03/uk-microsoft-nokia-idUKBRE98202X20130903

Microsoft Corp said it will buy Nokia Oyj's phone business and license its patents for 5.44 billion euros (4.6 billion pounds), making its boldest foray yet into mobile devices and bringing executive Stephen Elop back into the fold.

Nokia chief Elop, a former Microsoft executive, will return as Microsoft's board ponders a successor to current CEO Steve Ballmer, who will depart sometime in the next 12 months after initiating a reorganization intended to transform the software company into a devices and services group in the mould of Apple Inc.

Will MS be able to turn around Nokia?

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Turns the tech industry model on it's head. Instead of buying innovative startups for bargain basement prices and integrating them into your offering, spend a shed load of money on a failed company in it's twilight years and expect to use it to leverage your own fading asset. It's a guaranteed success.

Meanwhile, presumably Nokia will grab the cash and return to the original roots - making car tyres and rubber pipe.

About 12 years ago I sat in a hotel restaurant having breakfast. A Finn came and sat at the same table. He was reading the financial press and chuckling about how Ericcson had been absorbed by Sony, but Nokia was leading the mobile world and massively profitable. I bet he isn't so smug today.

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Its an interesting move, how long before thr Xbox Phone? I know lots of people who would move from their current platform for the Xbox Phone without thinking. As long as they do s better job thsn Sony did

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Will MS be able to turn around Nokia?

Elop already did, didn't he?

Just not the way the owners wanted.

Funny, isn't it? An ex-Microsoft employee becomes CEO. CEO switches their phones to run Windows. Sales fall through the floor. Stock price crashes. Microsoft buy them. CEO becomes Microsoft employee again.

The only thing funnier would be if he became CEO after Ballmer.

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Elop already did, didn't he?

Just not the way the owners wanted.

Funny, isn't it? An ex-Microsoft employee becomes CEO. CEO switches their phones to run Windows. Sales fall through the floor. Stock price crashes. Microsoft buy them. CEO becomes Microsoft employee again.

The only thing funnier would be if he became CEO after Ballmer.

It's crazy, isn't it? I remember back in 2011 when Elop announced that Nokia were ditching Symbian in favour of Microsoft. I think that was the point were a salvagable situation became a lost cause. The developer community, which took years and years to build up pretty much abandoned Nokia overnight. The carriers also abandoned Nokia (after all, who wants to sell phones that would be obsolete in a year?). With no developers, no sales channels and no future, sales collapsed and when Nokia finally had a Windows device to sell, the operating system turned out to be a lemon. At that stage and with cash reserves running low, it was too late for Nokia to move to Android, and was inevitable that Microsoft would pick the carcass of Nokia.

At least with Microsoft buying the phone division of Nokia, a line has now been drawn under the whole mess. Nokia are free to pursue other interests and hopefully, they can even consider re-entering the phones market. With lots of cash on hand, I would love to see them buy Jolla (the Meego team that Elop sacked). Even with it's frustrations, I loved Meego on my N900.

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