Nokia Shareholders Overwhelming Greenlight $7.2B USD Microsoft Deal
November 19, 2013 2:50 PM
99.7 of shareholders who voted approved of the deal
Nokia Oyj. (
) 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. (
I. Deal is Approved
The Financial Times
-- a Pearson PLC publication (
) -- 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. (
) -- 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
, "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
become Microsoft's next CEO
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
) 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
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.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
Is Microsoft Trojan Horsing Itself? CEO Candiate Elop Reportedly Wants to Break up Company
November 8, 2013, 12:30 PM
Microsoft Shortens List of Potential CEOs
November 5, 2013, 11:25 PM
Nokia Sells 8.8 Million Windows Phones in Q3, Transitions to Telecom Sales
October 29, 2013, 8:11 PM
Reports: WinPhone 8.1 to Allow Virtual Buttons; Nokia 521 is Most Used WP8 Device
October 16, 2013, 8:00 AM
Microsoft Purchases Nokia's Devices and Services Division for $7.2B
September 3, 2013, 12:00 AM
3 Budget LED TVs
December 7, 2016, 5:00 AM
How is the BlackBerry DTEK50 Doing Today?
December 6, 2016, 1:00 PM
Best Secure Android Mobile Browsers:
December 5, 2016, 7:24 PM
Latest News, this is how the Moto X (2017) might look
December 3, 2016, 9:02 AM
Fake Apple Chargers Fail Safety Tests
December 2, 2016, 5:00 AM
FlowMotion veils its new smartphone stabilizer, FlowMotion One
December 1, 2016, 3:00 AM
Most Popular Articles
What Can You Do with Your New Echo Dot?
December 3, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Microsoft Surface – Which Surface is Right for You?
December 2, 2016, 5:00 AM
The iPlugmate is an Excellent iPhone Flash Drive at a Great Price. (Deal Expires in 3 Days)
November 23, 2016, 1:00 AM
Foscam R2 Home Security Camera System – High Quality High FHD Security Video Footage with No Monthly Fees
December 1, 2016, 2:00 AM
Latest Blog Posts
Latest Tech News
Dec 8, 2016, 5:11 AM
In The News
Dec 7, 2016, 5:00 AM
e Guide: Mobile Security for 2017
Dec 6, 2016, 5:00 AM
Apple Car is Not Dead
Dec 5, 2016, 1:00 AM
Dec 4, 2016, 5:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information