Microsoft buys Nokia’s mobile device biz for less than what Google paid for Motorola. Elop moves back to Redmond
It actually happened. Microsoft is buying Nokia’s mobile device business for 5.44 billion Euros ($7.18B).
Even when WSJ reported about the negotiations between Microsoft and Nokia back in June, it was hard to believe the deal can happen, especially when The Journal said the talks are over.
But that leak was probably just Microsoft putting pressure on Nokia board to lower the asking price. And it was successful. Microsoft is paying 50% of Nokia’s market value ($14.48B as of last Friday) for half of its business. With absolutely no premium. Which is not an indication of strength for Nokia.
This is Nokia board taking a look at Lumia sales numbers for Q3 and Q4, and just giving up. Heck. Microsoft is actually getting Nokia for less than what Google paid for Motorola.
As part of the deal, Stephen Elop resigned as Nokia CEO, will become Executive VP of Devices & Services unit, and will transfer to Microsoft when the deal closes in Q1, 2014.
So what’s now for Nokia?
Well, they are out of mobile device business for good, and will become a mobile infrastructure business like Ericsson, only much smaller. And they will still have their HERE location business platform, but that never amounted for much. Maybe they can grow it now into something interesting.
One thing’s for sure. Nokia as we knew and loved for the last couple decades, is no more. What’s left is Microsoft Mobile Device Division with Lumia brand, and some boring telecoms infrastructure and location business in Finland. Oh, and a bit of a patent troll, too