Print 12 comment(s) - last by euclidean.. on Nov 21 at 8:10 AM

99.7 of shareholders who voted approved of the deal

Nokia Oyj. (HEX:NOK1V) shareholders voted this week in an overwhelming 99.7 vote among the roughly 80 percent of shareholders who voted to approve of a two-component, $7.4B USD deal to sell or license certain assets to Microsoft Corp. (MSFT).  
I. Deal is Approved
The Financial Times -- a Pearson PLC publication (LON:PSON) -- was the first to report on the successful vote.  The purchase now awaits U.S. and European regulatory approval.
The deal involves €3.79B ($5.13B USD) for Nokia's devices unit (which makes the Lumia Windows Phones, among other models) and a €1.65B ($2.23B USD) payment for permanent licensing of Nokia's patent portfolio to Microsoft (it is unclear whether this license also extends to third-party Windows Phone makers).

Out: Nokia Devices -- this profitable, growing unit transfers to Microsoft in Q4.

For Microsoft, the deal gives it a direct smartphone brand that it can use to showcase the potential of Windows Phone and better gauge the platform's shortcomings.  Google Inc. (GOOG) -- the market's dominant player -- bought Motorola Mobility in late 2011 for $12.5B USD for similar "synergies".
Some might wonder why Google and Microsoft couldn't just ask third parties what they need and focus solely on software/firmware.  Windows Phone product definition and design head Joe Belfiore offers an inside glimpse into why this approach is warranted commenting, "There are real-world examples of situations where Nokia was building a phone and keeping information about it secret from us.  And then late in the cycle we'd find out and say, 'If we had known that we would have done this other thing differently and it would have turned out better!'"
Of course similar situations can still happen to a lesser extent, even now that Google and Microsoft have directly controlled hardware brands.  But at least they have a better glimpse at the hardware side of what their third-party partners are facing.  
II. Fresh Blood
Microsoft will get 32,000 new employees out of the deal, including roughly 18,200 manufacturing-side employees.  It also regains Stephen Elop, who stepped down from his post as Nokia CEO to become head of Microsoft's new devices division.  Mr. Elop -- who formerly served as head of Microsoft's business software unit (which was in charge of Office development at the time) -- is considered a top contender to become Microsoft's next CEO.

Stephen Elop
Stephen Elop is considered a top candidate to become Microsoft CEO. [Image Source: Microsoft]

Reportedly, Microsoft will use Nokia's entry-level Asha smartphone series as an "on-ramp to Windows Phone" in developing markets.  Microsoft will rebrand the Lumia smartphones, which will likely be sold under the Surface brand (the deal did include licensing of the Nokia or Lumia trademarks which in a way is better to avoid confusion).
For Nokia, the deal gives it the cash necessary to buy out Siemens AG's (ETR:SIE) share in Nokia Solutions and Networks (NSN), a deal which cost Nokia €1.7B ($2.34B USD).  Nokia will remain involved in the phone market, but on the telecommunications, advanced technologies, mapping, and advanced research side.
An interesting side note: The New York Times and All Things Digital both reported in September that an April meeting between Nokia and Microsoft almost ended in disaster when a frustrated Microsoft CEO Steve Ballmer tripped and fell onto a glass coffee table while pacing around in a Nokia conference room review documents.  Screaming and bloody, Mr. Ballmer was patched up and continued the meeting.  Talks began in February 2013 and wrapped up in September when the deal was made public.

Source: Financial Times

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Watch out Nokia employees
By greenchinesepuck on 11/19/2013 4:51:17 PM , Rating: 1
there will be serious cuts coming as Nokia hardware business is losing money fast, MS will start plugging those holes by firing firing firing

also watch MS profits taking a nose dive as this huge hardware business will sap the money from other profitable divisions

not good looking at all :( beginning of MS downfall maybe. we'll see

RE: Watch out Nokia employees
By retrospooty on 11/19/13, Rating: 0
RE: Watch out Nokia employees
By kingmotley on 11/19/2013 5:30:33 PM , Rating: 5
Apple will come out with a line of plumbing fixtures

Enter the iPood.

RE: Watch out Nokia employees
By retrospooty on 11/19/2013 5:35:16 PM , Rating: 1
LOL... But they wouldn't be that funny with it, they would have to come out with something more like the iFlush for the low end market and the iBidet for the high end. ;)

RE: Watch out Nokia employees
By ritualm on 11/19/2013 8:16:24 PM , Rating: 1
Customer: My iToilet backed up and made a mess in my bathroom! HELP!
Apple: You're flushing it wrong.

RE: Watch out Nokia employees
By euclidean on 11/21/2013 8:10:02 AM , Rating: 2
Apple: Sorry, overflows are a feature.

By StevoLincolnite on 11/19/2013 3:23:58 PM , Rating: 5
This is why Steve is the best CEO in my opinion!

Microsoft CEO Steve Ballmer tripped and fell onto a glass coffee table

You just don't get entertainment like that from other boring suits/CEO's.

RE: .
By troysavary on 11/19/2013 4:53:24 PM , Rating: 3
And he finished the meeting, like the badass he is.

By emilinedbp157 on 11/20/2013 4:40:54 AM , Rating: 2
if you need a job try this site JOBS61 (dot)COM. Dan does it at home and makes $17.90 hourly just sitting and typing stuff all day...No experience needed too

RE: hy
By StevoLincolnite on 11/20/2013 6:32:27 AM , Rating: 2
That's Minimum wage, so pass you silly scammer.

Anybody Surprised?
By Monkey's Uncle on 11/19/2013 2:57:16 PM , Rating: 2
Not me.

Best deal?
By A11 on 11/19/2013 5:28:25 PM , Rating: 2
Who got the better deal, MS or Google?

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

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