1 Updates
Mixed reactions over Nokia-Microsoft deal
Photo Credit: Joe Raedle, Getty Images

Mixed reactions over Nokia-Microsoft deal

Sep 4 2013, 7:48am CDT | by IANS

Helsinki, Sep 4 (IANS) Finland, base and origin of mobile giant Nokia, was shrouded in a mixed atmosphere filled with hope, watch, doubt and despair after news of the company's deal with Microsoft.

Helsinki, Sep 4 — Finland, base and origin of mobile giant Nokia, was shrouded in a mixed atmosphere filled with hope, watch, doubt and despair after news of the company's deal with Microsoft. Early...

Filed under: news

Full Story below YouTube Videos

 
 

 

32 weeks ago

Mixed reactions over Nokia-Microsoft deal

Sep 4 2013, 7:48am CDT | by IANS

Helsinki, Sep 4 (IANS) Finland, base and origin of mobile giant Nokia, was shrouded in a mixed atmosphere filled with hope, watch, doubt and despair after news of the company's deal with Microsoft.

Helsinki, Sep 4 — Finland, base and origin of mobile giant Nokia, was shrouded in a mixed atmosphere filled with hope, watch, doubt and despair after news of the company's deal with Microsoft.

Early Tuesday morning, Nokia announced the merger in a press release on its website, and triggered quick follow-up reports from media.

It agreed to sell the devices and services business at a price of 3.79 billion euros, and license its patents for 1.65 billion euros. The company will then focus on infrastructure, mapping and licensing, reports Xinhua.

While some believe the total amount of 5.44 billion euros, or about $7.2 billion, was acceptable considering the shrinkage of Nokia phones' market share, others argued it was a notably low price.

Nearly two years back, Microsoft acquired internet communication company Skype at a higher cost of $8.5 billion.

The stock market reacted positively. Soon after the opening of Helsinki Stock Exchange Tuesday morning, Nokia's share price surged by 47 percent from 2.96 euros to 4.33 euros.

"After a thorough assessment of how to maximize shareholder value ... we believe this transaction is the best path forward for Nokia and its shareholders," said Risto Siilasmaa, who chairs Nokia board of directors and will become interim CEO after the transaction.

"Mobile business remains the only sector suffering losses, and now all the burden is on the part of Microsoft," said a former project manager of Nokia on condition of anonymity.

It seems to be necessary to integrate hardware and software, now that Google and Apple are leading the market by doing so, he added.

According to the press release, Nokia's headquarters will remain in Espoo and all the 4,700 Finnish workers will continue to work here.

None of the Nokia staff member commented on the transaction.

"They are not sure about their own future," said a public servant who gave her name as Anna. "There was a time when many schools and a lot of majors were oriented toward Nokia, and people were educated to work for it," she added, apparently worried about the lack of diversity in the country's ICT industry.

Finnish Prime Minister Jyrki Katainen said the news confirmed the notion that Finland is undergoing a drastic transition period. However, he admitted that "Nokia links to emotion. Every Finn has experienced Nokia".

"End of an era" was the title of a news report by Yle, the Finnish broadcasting company. Recalling Nokia's rocky road of recovery, the article said the transaction marked the culmination of a recovery programme spearheaded by CEO Stephen Elop.

The Canadian and former Microsoft leadership member was recruited by Nokia in 2010 to rescue the company from downfall.

Reports said Elop will return to Microsft after the transaction, to be implemented in first quarter of 2014. He was widely believed to have a great potential to succeed Microsoft's outgoing CEO Steve Ballmer.

Numerous analyses emerged on Tuesday, giving hope of better future for Lumia phones, Windows Phone system, financial status of Nokia and entrepreneurship in Finland.

In this nordic country, where about 2 percent of GDP once came from Nokia, people evidently could not help from being dismayed.

"I have two Nokia phones. I am used to the logic. But what shall I use in the future? A Sumsung? An Apple? I really don't know," Anna murmured.

IANS

Source: IANS

 

Don't miss ...

 

blog comments powered by Disqus

Latest stories

The Other Important Number In The President's Obamacare Briefing: 24
President Obama was triumphant on Thursday. After facing months of questions over whether the White House would hit its goal of 7 million Obamacare sign-ups, the president had the latest enrollment data in hand—and it...
 
 
It's Good to Be King: LeBron James Tops 2014 Top-Selling NBA Jerseys
We haven’t crowned a winner for the 2014 NBA Championship, but we know who the king is when it comes to jersey sales. For the sixth time, Miami Heat power-forward LeBron James tops the NBA most-popular jersey list based...
 
 
The L.A. Clipper Miracle... Next: Democracy Will Break Out in Russia?
The Lakers are dead as Moses. The Clippers, who finished 11 games ahead of them last season and 30 in this one, are No. 3 seeds in the NBA’s Western draw, meaning they’ll be favored to stay alive for the next three or...
 
 
12 Reasons Why New Zealand's Economic Bubble Will End In Disaster
New Zealand’s economy has been hailed as one of world’s top safe-haven economies in recent years after it emerged from Global Financial Crisis relatively unscathed. Unfortunately, my research has found that many of...
 
 
 

Latest from the Network

Leighton Meester praises Adam Brody
Leighton Meester thinks her new husband Adam Brody is "incredible." The former 'Gossip Girl' star, who tied the knot with the actor in a secret ceremony in February after meeting him on the set of their film 'The...
Read more on Celebrity Balla
 
The Other Important Number In The President's Obamacare Briefing: 24
President Obama was triumphant on Thursday. After facing months of questions over whether the White House would hit its goal of 7 million Obamacare sign-ups, the president had the latest enrollment data in hand—and it...
Read more on Business Balla
 
It's Good to Be King: LeBron James Tops 2014 Top-Selling NBA Jerseys
We haven’t crowned a winner for the 2014 NBA Championship, but we know who the king is when it comes to jersey sales. For the sixth time, Miami Heat power-forward LeBron James tops the NBA most-popular jersey list based...
Read more on Business Balla
 
The L.A. Clipper Miracle... Next: Democracy Will Break Out in Russia?
The Lakers are dead as Moses. The Clippers, who finished 11 games ahead of them last season and 30 in this one, are No. 3 seeds in the NBA’s Western draw, meaning they’ll be favored to stay alive for the next three or...
Read more on Business Balla
 
12 Reasons Why New Zealand's Economic Bubble Will End In Disaster
New Zealand’s economy has been hailed as one of world’s top safe-haven economies in recent years after it emerged from Global Financial Crisis relatively unscathed. Unfortunately, my research has found that many of...
Read more on Business Balla
 
Britney Spears' dad wants her to stay single
Britney Spears' father reportedly doesn't want her to get married again. The 'Perfume' hitmaker, who broke of her engagement to her former agent, Jason Trawick, in January 2013, is desperate to tie the knot with her...
Read more on Celebrity Balla
 
The Singular Secret For A Leader's Success: Self-Awareness
The National Advisory Council of a prestigious west coast business school was asked what single quality they thought would be most valuable for their graduates to acquire as they graduated.  The answer was self-...
Read more on Business Balla
 
Toby Keith's I Love This Bar & Grill Hit With Tax Warrant
In 2003, country singer Toby Keith went all the way to #1 with his mega-hit, “I Love This Bar.” The incredible popularity of the song inspired a chain of restaurants called Toby Keith’s I Love This Bar & Grill with...
Read more on Business Balla
 
What If Doctors Could Finally Prescribe Behavior Change?
This guest article is by Sean Duffy, CEO and Co-Founder, Omada Health Three out of four Americans will die of a disease that could be avoided—if only they could re-route their unhealthy habits. A new category of...
Read more on Business Balla
 
Steve Jobs and Ezra Cornell: Entrepreneurs
More and more MBA students are choosing to major in entrepreneurship, rather than the traditional disciplines of finance and marketing. How has entrepreneurship changed over the past century-and-a-half? Or has it...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla