Microsoft (MSFT) Buys Nokia (NOK) For $7.18 Billion, To Welcome Stephen Elop ?

Must Read

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme...

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

Microsoft Corporation (NASDAQ:MSFT) is finally buying core cellphone business of Nokia Corporation (ADR) (NYSE:NOK) for $7.18 billion. The writing was on the wall though; it took sometime to appear on papers. But what is more important, which is hiding behind this agreement? Apparently, a successor of Ballmer !

Microsoft and Nokia both are trying hard to catch up in fast-growing mobile market. Both the companies went into an agreement two years ago to strengthen their mobile market presence. In spite of several launches in last one year, Nokia is constantly losing to Samsung and Apple while Microsoft its showing marginally improvements in few countries.

Microsoft Buys Nokia

According to the last acquisition agreement, Microsoft has agreed to pay nearly $7.18 billion to Nokia to buy “substantially all” of Nokia’s businesses and to license Nokia’s patents. Under this agreement, Microsoft is welcoming many executives who could be possible contenders for Ballmer’s successor. However, the most important ‘acquisition’ out of all these executives is Nokia’s current CEO and ex-Microsoft executive Stephen Elop.

Advertisements

“Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing,” the companies said in a joint press statement. Nokia said the deal with Microsoft will improve its financial position and “provide a solid basis for future investment in its continuing businesses.”

Many analysts believe that Microsoft has made an intelligent move and this way it could solve its two problems instantly; The acquisition of Nokia’s mobile business is an effort to composite its mobile offerings in the market but what is more interesting is that Nokia’s current CEO Stephen Elop is the most favorite contender for Microsoft’s next CEO position. Elop, who left Microsoft in 2010 to join Nokia, played a key role in Nokia-Microsoft tie-up two years back and one must not be surprised to learn similar stories that pushed this deal to its faith. Since the day Microsoft’s existing CEO ballmer announced his upcoming retirement, the hunt for his successor is on and Stephen Elop is leading the race in online betting market with odds of 2/1.

Microsoft knew that in current scenario ‘poaching’ Stephen Elop back to Microsoft is not going to be a cake walk and the ‘hiring’ could have its own ‘ifs’ and ‘buts’. The best move was to inherit the whole team that Elop is leading along with business and Nokia’s buyout to Microsoft could be considered as “Microsoft acquisition of Stephen Elop, Nokia came as compliment along!

1 COMMENT

  1. I felt Stephen Elop is the guy behind Nokia’s failure. This can be think in other way around that Stephen Elop present Nokia to Microsoft. I hope you get what I mean??? When Nokia working for Linux, Unix OS Stephen Elop stop’d that project and he made Nokia to go with Microsoft Windows OS. In other way around Mr Stephen Elop by being outside from Microsoft working for Microsoft. Anyway Emotional attachment towards brand might get hurt(Nokia). Microsoft really need to work hard on Branding and marketing its devices in near future. Especially in India and Latin America region.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Can Twitter’s New Feature Really Make You Feel Safe?

Twitter has been on what seems like a campaign to make the site a place for more...

TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies' transactions with Chinese businesses, which is set to come into effect 45 days...

Can ‘Made In India’ Twitter Alternative Replicate Twitter’s Success?

The popular microblogging platform Twitter has a new Indian clone and it is all set to capture the non-English users in the...

TikTok Stars Are Fighting an Uphill Battle

2020 has proven to be a difficult year for many Chinese-origin apps, including the wildly popular short video app, TikTok. Many Chinese...

Google Is Changing the Face of Global Health

COVID-19 is easily the most catastrophic global health crisis of the 21st century. As July 2020 came to a close, case counts...

After Facebook, Now Twitter is Caught Abusing Phone Number For Ads

Thanatophobia, or fear of death, is a relatively complicated phobia. Similarly, fear of losing your digital accounts to hacklers or scammers is equally...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This