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Update on Microsoft’s $19b takeover of Nokia’s mobile phone business: “These rumors are 100 percent baseless”


Wow. First it was shocking to hear that Nokia hooked up with Microsoft and decided to “build a new global mobile ecosystem that is unlike any other” that will make Windows Phone their primary mobile OS. Today there are new rumours from wireless insider Eldar Murtazin that Microsoft is continuing scooping up companies by throwing $19 billion at Nokia’s mobile business. Murtazin stated on Twitter that “One small software company decided last week that they could spent 19 bln USD to buy a part of small phone vendor”. The relationship would make sense as Nokia Stephen Elop came from Microsoft and Nokia has been struggling to keep up to Apple and Google’s Android… but $19 billion seems a bit low to take over the top mobile phone vendor in the world. Murtazin also believes that the Microsoft/Nokia takeover will be announced or closed before the end of 2011.

Update: Reuters posted a note from Nokia that stated the $19 billion takeover is incorrect. Nokia spokesman Doug Dawson said “These rumors are 100 percent baseless”.

Source: BGR

  • Jigsaw

    So sad. Nokia was one of the top mobile device company before the Iphone came out. Now it just cannot keep up the pace with the others.

    • WhoCares

      Couldn’t have said it better myself. I used to buy ONLY Nokia’s phone at one point, but I have slowly drifted away from them like many others because of their outdated OS and ugly hardware. Kinda sad if you ask me…

    • Stuntman

      I think the N97 contributed to Nokia’s downfall more so than the iPhone.

    • tarun

      actually before the android came out… the rise of the android leads to the downfall of nokia…

  • Terry

    Nokia phones are still good and is a good company.
    People say Nokia fails now because of some weird misconception about the quality of their phones, when really their image IN THE WEST has been tarnished by superior Apple and Google marketing efforts.

    It’s like the console wars. All the systems are really really good, but some people think one is worse then the other because they fall for marketing and avid fans claiming such “facts”.
    Or look at RIM, everything thinks they’re doomed (people who post on sites like this anyways) when in reality they are incredibly profitable and aren’t losing money at all. This perception is mainly due to people being gullible to avid fans (Apple fans for example) and competition marketing.

    Even if MS buys Nokia I bet you anything Symbian will still be around. Maybe not in high end smartphones, but in low end smartphones and phones.

    It actually blows my mind how easily people fall for stuff on the Internet. It’s like common sense leaves the house when people start surfing.

  • Kenypowa

    So Nokia is only worth 2.5 times more than Skype, a company that has never made any money throughout its history?

    Can’t blame some Nokia employees who feel Elop is a trojan horse from MS.

  • jB

    This is old news. And Eldar already said talks would start happening last week and nothing has happened. Not only that, Nokia has vowed to support Symbian until at least 2016 and a MeeGo device will be released in Q3 or Q4.

    Update yourselves, please. A quick Google search will inform you of all of this and maybe you won’t regurgitate old rumours that have already been proven wrong. Thanks.

  • tbr

    Nokia’s fault was that they were going to use M$crobucks products.

    The only reason M$crobucks would buy them is that hardly anyone wants to carry their operating system. This way they have some phone presence.

    What M$croshit fails to see is that many are fed up with them and their business practices and this is just a sign of the times.

    • Mark

      When you insist on substituting a dollar sign in Microsoft’s corporate name you expose yourself as a biased critic and diminish the strength of the argument you are trying to make. They are no different than any other company in terms of their desire to earn money.

      And if you absolutely can’t restrain yourself then at least use the generally accepted format of Micro$oft. Really, do you think it is actually spelled Mscrosoft?

      Nokia is absolutely past its glory days. They still have the fundamentals to build devices but the brand name is damaged. Consumers now look to Apple, Google, Samsung, etc for devices and software. Makes sense as an acquisition – MS has an OS nobody wants, and Nokia has floundering software/line in need of vision. I see barely mediocre things in the future of this deal.

    • tbr

      you are right about one thing, i do not like M$crosoft any way you want to spell it.

  • Xer

    It is so sad to see Nokia is being swallowed up like this. The smart phone idea was originally introduced by Nokia back in 2004 with Nokia 7600. 3G back then was already developed but it was just that the world did not catch up with this technology until 2008 with iPhone 3G. Nokia should blame itself for it’s failure for the past few years for its ancient OS.

    Microsoft is not that good either. They are so late to the game. Winnows 7.1 feature, from what Microsoft said it is can only be on par with iOS 4 or Andriod 2.3. iOS is only a few days away and Andriod 2.4 is no far away, I wonder how Microsoft can win any edge.

    When two failed companies joined together, it just does not make sense. Unlike in a math class, double negative won’t get you positive.

  • Len

    Smart.. they kinda dug them selves in a bit of a hole by being late to give up Symbian then by choosing Windows, another late comer. This is good for the owners, time to buy a private island, a yacht and get some friends half their age that look good in a bikini… let this be MS’s problem

  • andy c

    i have no doubt that Nokia is in trouble but to write them off completely is short sighted.

    How many of you would have considered buying a Motorola smartphone 3-4 years ago? this was a company which milked the Razr for years without innovating and was left for dead.

    all it takes is one home-run product and most would agree that Nokia has the hardware side of things down pat.

    • lolz

      TBH, I still would not buy ANY Motorola mobile phone.
      Now they are riding on a success of android, but their phones are still $hit.

    • andy c

      dont get me wrong i currently would not by a moto smartphone either but they are at least in the conversation which is more then can be said for Nokia’s current flagship the N8

  • Jim

    IF they wait a bit MS could get it cheaper.
    Sadly Nokia is dying with their only hope that the MS software will help sell their hardware.

    I like Nokia but they have struggled to keep up with the iPhone and then Android just made it worse.

    All this proves is that hardware is just a very small piece of the puzzle for a successful phone. The key is User interface and real world usability. Hardware can be purchased from China very cheaply but end user quality software is difficult to nail down.

  • merv

    I think the “insider” is just someone with Nokia stock which dropped today. Hmm…how to get the stock price to climb.

  • ToniCipriani

    Title’s misleading. It’s Nokia’s mobile device division only, not the entire Nokia.

  • Alex Perrier

    Except for myself, all my family has Nokias. They are pretty good budget phones, they work very well and they are well built. Nokia is well known for their phones, but their smartphones have yet to stand out from the competition.

    As much as i prefer Android-based platforms such as Linux, Microsoft has over 90% of the traditional computer market share. They are known for their software and may gain mobile market share by teaming up with Nokia.

    Yes, i don’t like Microsoft, but this merger makes sense and definitively will stir up competition. This means new mobile products like Xbox and Office. It just shows that the mobile scene is more competitive than for PC.

    • Adam

      Android-based platforms such as Linux?

  • DMav

    After Nokia took that 20% hit on its stock price the other day, I’d say it smart that Microsoft is putting a bid for Nokia’s mobile division. Nokia is still a great company and brand. Their current market value is probably prettying tempting for other large tech companies as well (Google, Apple, Intel, HP to name a few). If one of them put in a bid for Nokia, Microsoft is pretty much done in the mobile game. I’m sure Microsoft sees Nokia as the catalyst that kicks off the Windows Phone revolution. If it wants to see it through, I don’t think it has much of a choice.

  • nitish pitre

    first of all Nokia lost its popularity due to lack of marketing strategy as i fell if you look at Samsung marketing and variety strategy by varying features from mobile to mobile that’s why they lost major Indian market .this how i feel but still Nokia can make progress.

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