Report: Microsoft decided against buying Nokia, for now
Microsoft CEO Steve Ballmer considers buying Nokia. "Kinda want"
Rumors are flying around today, notably from the Register who has it on good account, that Microsoft did seriously consider buying Nokia but decided against the deal once the Finnish firms' books were opened.
If the story is accurate, it represents an interesting twist on the partnership and may still leave a cold feeling for Microsoft's other OEMs. The Register cites "well placed sources" for the story so we'll have to take their word (and their sources) on the matter but Microsoft reportedly was "unimpressed" with Nokia's numbers--or at least didn't see the added extra value of buying the company versus just partnering with them.
As the Register puts it: Nokia didn't want to sell and Microsoft really didn't want to buy. The only reason for an acquisition would have been to keep Nokia out of someone else's hands due to their IP and engineering value. But both companies have time yet--Microsoft has Windows Phone 8 to launch and Nokia needs still has cash to burn. In other words, Microsoft is there as a golden parachute should Nokia really start to crash by next year. Not only that, should such a scenario happen Microsoft would actually get a better deal due to the de-valued stock.
From our perspective as consumers, we don't see the value had Microsoft decided to go forward. Buying a company, integrating different corporate cultures and alienating your partner OEMs, notably HTC, seems like something that could have backfired. Not to mention, it's not clear what would be different from today as it appears Microsoft is getting all that it wants already from Nokia.
We think there's little doubt that both companies have explored numerous options going forward--that shouldn't be a surprise. But we would rather return to this ongoing rumor late in 2012/early 2013 to see how Windows phone 8 is doing.
Source: The Register; via CNET; Thanks, Shane
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Daniel Rubino is the Editor-in-chief of Windows Central, head reviewer, podcast co-host, and analyst. He has been covering Microsoft since 2007 when this site was called WMExperts (and later Windows Phone Central). His interests include Windows, laptops, next-gen computing, and for some reason, watches. Before all this tech stuff, he worked on a Ph.D. in linguistics, watched people sleep (for medical purposes!), and ran the projectors at movie theaters because it was fun.
Nokia's stock gave back all its gains once folks realized the sale wasn't happening--Barron's target price of two dollars a share looks about right, again.
MS is smart to not put all their eggs into the Nokia basket...alot of consumers out there are brand loyal to HTC and Samsung and the fact that they can get a WINDOWS phone to replace their existing buggy androids without having to completely change whats familiar to them is a HUGE selling point. Not all androids are created equal and its a very good thing that Windows is the same. Once windows 8 drops, market share will increase, more oems will hop aboard, and youll start seeing package deals such as "get a lenovo windows laptop and a lenovo windows phone for the price of one". The possibilities are endless for MS and the doors are just starting to open.
So good move, MS, dont screw your partners, because some of us dont drink Nokia Koolaid...and I would hate for you to tell me thats my only choice.
That tech is surely going to make its way to future Windows Phones.
I know it doesn't makes sense..