{"id":15401,"date":"2013-09-03T07:42:18","date_gmt":"2013-09-03T06:42:18","guid":{"rendered":"https:\/\/aidanfinn.com\/?p=15401"},"modified":"2013-09-03T07:42:18","modified_gmt":"2013-09-03T06:42:18","slug":"microsoft-agrees-to-acquire-nokia","status":"publish","type":"post","link":"https:\/\/aidanfinn.com\/?p=15401","title":{"rendered":"Microsoft Agrees To Acquire Nokia"},"content":{"rendered":"

A few hours ago (early morning Irish time) Microsoft announced<\/a> that:<\/p>\n

\n

\u2026 the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia\u2019s Devices & Services business, license Nokia\u2019s patents, and license and use Nokia\u2019s mapping services.<\/p>\n<\/blockquote>\n

Due to all the usual legal mumbo jumbo the purchase hasn\u2019t completed yet<\/a> and won\u2019t for some time:<\/p>\n

\n

The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions.<\/p>\n<\/blockquote>\n

This is huge news and it isn\u2019t.  In fact, people have been wondering \u201cwhen\u201d rather than \u201cif\u201d.  There were a few clues:<\/p>\n

1) Devices and Services<\/p>\n

Like it or not, Microsoft describes itself as a \u201cdevices and services\u201d company now.  It\u2019s hard to be a devices company if you don\u2019t manufacture the most commonly used form of device on the planet, the phone, like your two main rivals do (Apple and Google\/Motorola).<\/p>\n

2) Dwindling Manufacturer Sentiment<\/p>\n

Who makes Windows Phone handsets?  Nokia, obviously.  So do HTC and Samsung.  The rumour mill says that HTC is considering a big shakeup in their models, and the HTC One (great reviews if not sales) might be a factor.  Samsung\u2019s ATIV SP8 handset is doing \u201cso well\u201d that you can pick it up for tap dancing in a store in the UK – it\u2019s not really that bad but not far from it.  I know lots of people with Nokias, some with HTCs, and one with a Samsung.<\/p>\n

So Microsoft would be naturally worried about a single third-party vendor ecosystem.  That must have turned into case of the shakes when Huawei started sniffing around in Finland to see if Nokia was worth buying.<\/p>\n

There have been rumours of Microsoft building a Surface phone, and even rumours of one being manufactured in China.  Maybe the *ahem* success of the Surface tablet range forced a re-think if Surface Phone really did exist as a program?  <\/p>\n

It just makes too much sense for Microsoft to acquire Nokia.  They already had an exclusive arrangement.  Nokia was living off of cash reserves.  Nokia is a company that can<\/em> build to rival Apple\u2019s design \u2013 no more chunky models with the battery life of a Mayfly please!  And Microsoft needs to start building Windows Phone handsets before the partners disappear.<\/p>\n

My prediction for the future:  2 handsets per 12-18 months.  One will be high-end device in the \u20ac600-700 (or $ because that\u2019s how manufacturers do currency conversions) range.  The other will be a lower price device for the mass market.  Both will be available via AT&T in the USA, and nowhere else in the world.  Cos that\u2019s how Microsoft executive leadership rolls!<\/p>\n

Sigh.<\/p>\n

EDIT:<\/p>\n

OH NO!  This means Nokia CEO Stephen Elop could be coming back to Microsoft.  The horror!  His name was widely being discounted by informed people as a candidate to replace Steve Ballmer.  The general media and bookmakers had him as a lead player.  I threatened on Twitter that I\u2019d switch sides to VMware, Apple, and Google if he became CEO.  Now it\u2019s \u2026 it\u2019s \u2026 it\u2019s a realistic possibility.  <\/p>\n

I might have to buy this Mastering VMware vSphere 5<\/a> book by Scott Lowe soon:<\/p>\n

<\/a><\/p>\n

On the other hand, let\u2019s look at Stephen Elops big achievements:<\/p>\n

    \n
  1. He emptied the room with his keynote presentation at TechEd Europe 2009.  I couldn\u2019t even hear at one point because of the noise of people walking out of his bore-fest.  Being an executive on his board could be like catching sleeping sickness.<\/li>\n
  2. Nokia\u2019s share value \u2026 well \u2026 David D\u2019Souza<\/a> (@davidds) put it well:<\/li>\n<\/ol>\n

    \"image\"<\/a><\/p>\n

    Dear Mr. Gates, for all that is good and holy, please do not select Stephen Elop as the next CEO of Microsoft!!!!!<\/p>\n","protected":false},"excerpt":{"rendered":"

    A few hours ago (early morning Irish time) Microsoft announced that: \u2026 the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia\u2019s Devices & Services business, license Nokia\u2019s patents, and license and use Nokia\u2019s mapping services. Due to all the usual legal mumbo … Continue reading “Microsoft Agrees To Acquire Nokia”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_wpcom_ai_launchpad_first_post":false,"footnotes":""},"categories":[25],"tags":[180],"class_list":["post-15401","post","type-post","status-publish","format-standard","hentry","category-microsoft","tag-hardware"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t