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Old 09-03-2013, 09:08 AM   #1
Rommel
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$7 BILLION: MS Buys Nokia With Change from Cushions, Elop Rumor



Welcome back from Labor Day ladies but mostly geeky-gents! Microsoft didn't take a holiday, instead gobbling up maligned Nokia's mobile business. The Verge carries the story, but you could probably read that anywhere--it's kind of a big deal.

Quote:
Microsoft has purchased Nokia's devices and services unit, bringing the Lumia lineup under the Redmond roof. The move unites Windows Phone 8 with its biggest hardware supporter, giving the company the integrated mobile offering it's been looking for with Surface and other devices. When the deal closes in the first quarter of 2014, Microsoft will pay €3.79 billion for Nokia's business, plus another €1.65 billion for its portfolio of patents. (The €5.44-billion total is considerably less than Microsoft paid for Skype in 2011.) 32,000 people are expected to transfer from Nokia to Microsoft, including 18,300 that are "directly involved in manufacturing."
More interesting, industry watchers will note Nokia was lead by former MS executive Stephen Elop. Mr. Elop was instrumental in Nokia eschewing the popular Android software and taking the Lumia camera with a phone in it to the Windows 8 realm. Now, the Wall Street Journal is speculating that he is in line for Steve Ballmer's position of CEO of Microsoft.

Quote:
Having left Microsoft after running the company's profitable business division, Mr. Elop returns a bit of a hero. He was the only executive in the global handset business to exclusively use the Microsoft mobile platform and Nokia now sells nearly every Windows phone that is sold world-wide.

The table is set for the 49-year-old executive to help Mr. Ballmer pull off an ambitious plan and, in the process, win respect in Microsoft's board room as its directors search for a new CEO.
It almost seems like this was all part of the plan.

Last edited by Rommel; 09-03-2013 at 10:23 AM..
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Old 09-03-2013, 10:05 AM   #2
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I don't know a single person who uses a Nokia phone now.
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Old 09-03-2013, 10:09 AM   #3
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Originally Posted by Rommel View Post
Now, the Wall Street Journal is speculating that he is in line for Steve Ballmer's position of CEO of Microsoft.
Great plan. Let's take the guy that pretty much single handedly ran one of the greatest telecom giants in the industry into the ground and make him CEO of Microsoft.

I wonder what his behind the scenes kickback was from MS for further tanking Nokia (who could have lifted their revenue by joining the profitable Android ecosystem) by creating an exclusive agreement with MS to push the worst mobile experience in history.

I suppose he's no worse than Ballmer.
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Old 09-03-2013, 10:22 AM   #4
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If not for the fact that Windows phone is allegedly awful, I say allegedly because I know no one with one to ask, it's actually a brilliant plan. MS got Nokia to build infrastructure for it and now has ownership for what amounted to a fire sale. That's on top of three years of payments from Nokia to MS and a stock surge today for the new owners.

This is all on the heels of the rumors about Windows phone and RT merging and the leaks about Windows 9 & 10. MS is beginning to aim for what it should have from the start--a unified environment similar to Apple's.
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Old 09-03-2013, 10:23 AM   #5
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If not for the fact that Windows phone is allegedly awful, I say allegedly because I know no one with one to ask, it's actually a brilliant plan. MS got Nokia to build infrastructure for it and now has ownership for what amounted to a fire sale. That's on top of three years of payments from Nokia to MS and a stock surge today for the new owners.

This is all on the heels of the rumors about Windows phone and RT merging and the leaks about Windows 9 & 10. MS is beginning to aim for what it should have from the start--a unified environment similar to Apple's.
I've used the newer windows phones and actually thought they were pretty good. Droids, iPhones, Windows phones all seem to do certain things well.
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Old 09-03-2013, 10:27 AM   #6
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Originally Posted by Rommel View Post
If not for the fact that Windows phone is allegedly awful, I say allegedly because I know no one with one to ask, it's actually a brilliant plan. MS got Nokia to build infrastructure for it and now has ownership for what amounted to a fire sale. That's on top of three years of payments from Nokia to MS and a stock surge today for the new owners.

This is all on the heels of the rumors about Windows phone and RT merging and the leaks about Windows 9 & 10. MS is beginning to aim for what it should have from the start--a unified environment similar to Apple's.
It's such an awful UI that the new iOS7 will borrow heavily from WP8.

In other news Verizon acquired the remaining stake in its own company from Vodafone for $130 billion.
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Old 09-03-2013, 10:28 AM   #7
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If not for the fact that Windows phone is allegedly awful, I say allegedly because I know no one with one to ask, it's actually a brilliant plan. MS got Nokia to build infrastructure for it and now has ownership for what amounted to a fire sale.
Oh, good plan on buying Nokia for sure. I mean about making that ass Elop MS's CEO. If they want future success they'd better look elsewhere. Elop isn't going to bring anything MS could use right now to the CEO position, he's a mini-Ballmer. They can both put "driving a tech titan into the ground" on their resume so at least they have that in common.
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Old 09-03-2013, 10:30 AM   #8
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I had forgotten about Nokia until this news. They're the ones who totally missed out on Smartphones until recently. Yeah this is a fantastic idea...
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Old 09-03-2013, 10:30 AM   #9
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I think the finns got swindled.

First for letting an MS alumnus run the roost and pigeonhole the hole company into reliance on MS,

Second for lowballing the valuation of the company to sell it to MS.

I would not be surprised to see that guy get a major seat at MS, he handed a giant company to them on a silver platter.

Zynga be part of the "MS plan" as well? Don killed off their wagering division as soon as he got there, its something they had lobbied for years to get through govt.
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Old 09-03-2013, 10:37 AM   #10
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I think the finns got swindled.
You wanna play business with Americans you're going to lose. We do three things well:

1. Bombing the living shit out of people
2. Delivering pizza
3. Negotiating deals that only benefit us to buy companies that paid us licensing fees at a later date

You can sometimes add in a 4: Selling companies to foreign firms and then buying them back after an economic cycle turns.
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Old 09-03-2013, 11:34 AM   #11
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Great subject line, Rommel!
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Old 09-03-2013, 11:43 AM   #12
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I just got the Nokia 928, and I'm digging the shit out of it. The camera is by far the best I've seen, or used in any phone. I've been using WP starting back with 7, 7.5, and now 8, and love it.

I design mobile apps for a living, and have played with all kinds of devices, and really do like the WP platform. It's what I choose to use in my personal life outside of work.
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Old 09-03-2013, 11:49 AM   #13
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I just got the Nokia 928, and I'm digging the shit out of it. The camera is by far the best I've seen, or used in any phone. I've been using WP starting back with 7, 7.5, and now 8, and love it.

I design mobile apps for a living, and have played with all kinds of devices, and really do like the WP platform. It's what I choose to use in my personal life outside of work.
You're a good person to ask, then--why the fuck does WP need its own apps? Shouldn't the design philosophy be to port Windows 8 metro to a phone proper and let the user utilize the millions of native windows programs?
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Old 09-03-2013, 11:49 AM   #14
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Stephen Elop did not drive Nokia into the shitter. They were already headed into the shitter with their inability to launch their own successful smart-phone OS (Symbian, Maemo, MeeGo). Elop, by adopting Windows Phone as the standard Nokia OS, simply failed to steer the company out of the shitter and may have even depressed the accelerator a bit.

I do think the incestuous relationship of Microsoft/Stephen Elop/Nokia is very fishy and I would be super pissed off if I were a Nokia stockholder. It's like MS sent him over to Nokia to further ruin the company so MS could purchase them for cheaper. If he now goes on to a CEO job at MS, I'd look for a Nokia shareholder class action suit to kick off.
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Old 09-03-2013, 11:50 AM   #15
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Stephen Elop did not drive Nokia into the shitter. They were already headed into the shitter with their inability to launch their own successful smart-phone OS (Symbian, Maemo, MeeGo). Elop, by adopting Windows Phone as the standard Nokia OS, simply failed to steer the company out of the shitter and may have even depressed the accelerator a bit.

I do think the incestuous relationship of Microsoft/Stephen Elop/Nokia is very fishy and I would be super pissed off if I were a Nokia stockholder. It's like MS sent him over to Nokia to further ruin the company so MS could purchase them for cheaper. If he now goes on to a CEO job at MS, I'd look for a Nokia shareholder class action suit to kick off.
Why? Their stock prices soared today.
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Old 09-03-2013, 11:58 AM   #16
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You're a good person to ask, then--why the fuck does WP need its own apps? Shouldn't the design philosophy be to port Windows 8 metro to a phone proper and let the user utilize the millions of native windows programs?
Are you asking about WinForm applications? If you mean traditional desktop applications -- then because they simply wouldn't work on a 4.5 inch screen. Windows Mobile 6.5 and earlier tried that approach kind of.

As far as Windows 8 Metro apps to WP8 you can share a good amount of code (not all), but you still need to create the presentation layer for your target device. Your GUI should be different on a 10 inch screen than a 4 inch screen.

I assume as WinRT and WinPRT get closer we will see more code shared and as we move to Phablets GUIs will probably be the same (Microsoft demoed briefly at BUILD the notion of shared app code between Windows 8 and Xbox One), but IMHO if a company has the resources they should create a GUI for the phone and tablet.

There are subtle differences in the XAML and classes for WinPRT and WinRT so 100% code reuse isn't possible yet. I think that is part of the goal of Win8.1 and WP8.1 -- though I am not holding my breath.

Also Windows 8 is very gesture based. Swiping in, Charms bar, etc... a lot of that stuff isn't present on the phone.
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Old 09-03-2013, 12:07 PM   #17
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Are you asking about WinForm applications? If you mean traditional desktop applications -- then because they simply wouldn't work on a 4.5 inch screen. Windows Mobile 6.5 and earlier tried that approach kind of.

As far as Windows 8 Metro apps to WP8 you can share a good amount of code (not all), but you still need to create the presentation layer for your target device. Your GUI should be different on a 10 inch screen than a 4 inch screen.
True, but only the GUI. Making a whole new program is madness. MADNESS!

I am at work, someone post the song please.

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I think that is part of the goal of Win8.1 and WP8.1 -- though I am not holding my breath.
It was the goal of 8, except only fools who didn't rush and grab a copy of 7 were the ones to get stuck with it and its horizontal scrolling.
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Old 09-03-2013, 12:14 PM   #18
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True, but only the GUI. Making a whole new program is madness. MADNESS!

I am at work, someone post the song please.


It was the goal of 8, except only fools who didn't rush and grab a copy of 7 were the ones to get stuck with it and its horizontal scrolling.
WinRT and WinPRT in 8 were never going to be 100% shared. I think that was possibly a goal, but WinRT is more COM based, while WinPRT was more Silverlight based (making things real basic). They weren't ready to go 100% shared.

Good read if you care: http://arstechnica.com/features/2012...-is-new-again/
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Old 09-03-2013, 12:47 PM   #19
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In other MS news, it appears investors are pushing for the Xbox division to be spun off.

http://wallstcheatsheet.com/stocks/w...tml/?a=viewall
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Old 09-03-2013, 12:52 PM   #20
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Microsoft Q&A about the purchase with analysts: http://microsoft-news.com/steve-ball...icrosoft-deal/
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