backtop


Print 31 comment(s) - last by CharonPDX.. on Feb 18 at 9:18 PM


Nokia CEO Stephen Elop.  (Source: WPCentral.com)

Newly appointed President of Nokia Inc. (US), Chris Weber.
Microsoft to pay out billions in blockbuster deal with Nokia

While the blockbuster deal that's amped to put Windows Phone 7 on all Nokia smartphones --essentially phasing out Symbian and making WP7 the world's second-most popular mobile OS in its place -- is supposed to benefit both parties involved, it has thus far been met with mixed reaction. 

The day the deal was announced Nokia's shares dropped 14 percent, and a number of employees -- many on the beleaguered Symbian side -- used the company's flextime program to go home early.

Then, at the Mobile World Congress event in Barcelona over the past weekend, Nokia CEO Stephen Elop was forced to go on the defensive, Business Insider reports, after an audience member asked if he was a Trojan horse. 

"The obvious answer is no," Elop replied. "We made sure that the entire management team was involved in the process, and of course the board of directors of Nokia are the only ones that can make this significant of a decision about Nokia. They made that final decision on Thursday night."

The question was an obvious reference to Elop's past at Microsoft, where he was an executive for two years before taking the top spot at Nokia. To some, it may seem a little strange that Nokia would make such a partnership with Microsoft, particularly after its 10-year investment into Symbian. 

Elop also had to defend his shares of Microsoft stock, which Business Insider reports to be approximately 130,000 shares worth nearly $3.18 million.

Conspiracy theorists received additional ammunition Friday, when Nokia announced Chris Weber as its new president of Nokia Inc. (US) and head of the North American market after current president, Mark Louison, "decided to leave Nokia and pursue new career opportunities." Weber spent 16 years at Microsoft, where he held executive positions as high as corporate vice president.

While solid details of the agreement between the two companies have not been released, news surfaced over the weekend that sheds light on just how big the deal is. According to Computer Worldwhile showing a slide that portrayed Microsoft's investments flowing in Nokia's direction, Elop said, "the value transferred to Nokia is measured in Bs not Ms." Meaning, Microsoft pay-out to Nokia in the deal would be in the billions, not millions, of dollars. No additional details were given, like over how many years the investments would take place.

We also learned that Google was actively pursuing Nokia in what could have been a similar deal, but Microsoft won out, according to Elop. "If you combine the current market share of Android with the market share that Nokia could deliver to Android over the next couple of years, it’s a very large number. One could believe the mobile industry thereafter would be some form of duopoly," Elop said. The decision to go with Microsoft over Google was made to change the dynamic and make it "a three-horse race," as Elop said. Presumably, the multi-billion-dollar investment doesn't hurt, either.

As for availability, a top executive told Computer World that the first WP7-powered Nokia's will be available this year.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Symbian wasnt cutting it.
By Mitch101 on 2/14/2011 11:24:48 AM , Rating: 2
quote:
... antivirus software.

LOL. Charlie Miller ring a bell for the iPhone SMS Virus?
Although Droid has been hit twice with side loaded apps sending data off to china if you allowed the app access to all parts of your device. Get what you dont pay for sometimes. I think all phones will need something its just inevitable.

Reminds me I was reading a while ago about how hackers like to sit in coffee shops hacking through people who walk in with their MAC's and the comment they made was classic. The best thing about MAC users is none of them believe they need anti-virus software so after breaking into a MAC nothing is looking for you. Your free to move about and do and look at what you want because there are no alarms to trigger. While a windows PC user will always run security software you have to watch what you do because the wrong move will set off an alarm. This makes sense to me and as the larger the mac base grows the bigger the fall will end up being with mac users and their ignorance to why you run anti-anything software. As to why it hasn't happened yet someone said the majority of good hackers have moved to hacking smart phones they are everywhere and contain everything the home machine does that hackers want. Once again everyone is going to have to run some level of anti-anything software in time on smartphones.

Nokia makes some nice phones in a hardware way I see this as a win for Microsoft and I totally agree Microsoft is in this to make a profit and in order to do so they need exposure. This should help out a lot.


RE: Symbian wasnt cutting it.
By Tony Swash on 2/15/2011 10:59:30 AM , Rating: 2
quote:
LOL. Charlie Miller ring a bell for the iPhone SMS Virus?
Although Droid has been hit twice with side loaded apps sending data off to china if you allowed the app access to all parts of your device. Get what you dont pay for sometimes. I think all phones will need something its just inevitable.

Reminds me I was reading a while ago about how hackers like to sit in coffee shops hacking through people who walk in with their MAC's and the comment they made was classic. The best thing about MAC users is none of them believe they need anti-virus software so after breaking into a MAC nothing is looking for you. Your free to move about and do and look at what you want because there are no alarms to trigger. While a windows PC user will always run security software you have to watch what you do because the wrong move will set off an alarm. This makes sense to me and as the larger the mac base grows the bigger the fall will end up being with mac users and their ignorance to why you run anti-anything software. As to why it hasn't happened yet someone said the majority of good hackers have moved to hacking smart phones they are everywhere and contain everything the home machine does that hackers want. Once again everyone is going to have to run some level of anti-anything software in time on smartphones.

Nokia makes some nice phones in a hardware way I see this as a win for Microsoft and I totally agree Microsoft is in this to make a profit and in order to do so they need exposure. This should help out a lot.


Dream on!

I love this meme - it's so desperate :)

Soon, one day soon, real soon, just around the corner, Macs will get hit and then they will get just as much malware at Windows - you see, one day reeeeal sooon!

Dream on dude - in the meantime 99.99% of malware hits Widows. If you want to know why here is a nice overview.

http://rixstep.com/2/20100214,00.shtml

By the way the notion that the Microsoft Nokia deal means that WP7 is just going to take over the Nokia smart phone market share - or even a significant portion of it - is just laughable. There is a very interesting but very long and very detailed analysis of the outlook for Nokia in the next two years (summary - it aint good), including an analysis of the outlook for the WP7 Nokia phones, here

http://communities-dominate.blogs.com/brands/2011/...


RE: Symbian wasnt cutting it.
By Luticus on 2/16/2011 9:38:58 AM , Rating: 2
This article is a bogus piece of crap that basically compares todays mac technology with windows technology from the 90's. 100% pure FUD.


"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














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki