Rumours: ‘Experts’ say Facebook might buy Nokia for £10B to build FacePhone
First…what? 10 Billion? Nokia’s worth more than that just for the patents alone. Stock market evaluation puts them at 11B (which would be expected to rise sharply should Nokia’s new strategy work out for them and they start bringing in profit again).
Some guy called, Paul Amsellem, managing director of Mobile Network Group, a mobile marketing company reckons
Facebook will launch the FacePhone. And whether it has a blue color and a logo with a big F on it, it will definitely be disruptive,
Computerworld says Microsoft’s already linked to Facebook and Amsellem says the three could be very powerful together.
Amsellem then goes on to say that if not Nokia then RIM. Another Facbeook buy could apparently be Opera.
Lumia is already pretty much a facebook phone. Integrated facebook contacts, integrated facebook feed, integrated facebook photos, integrated facebook chat. And the Blue Lumias are kind of Facebook themed. Not sure it needs any more Facebookness.
Facebook Phone – is that even a good idea?
Source: computerworld
Cheers Jules for the tip!
Category: Nokia
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I laughed. Nice one.
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This is crazy, Im tired that nobody see a future for nokia
First: they killed symbian
second: they killed meego
third: they will kill nokia?
lol!
i want to kick elop’s ass right now!
I dont see that this is the worst scenario for Nok. Atm they ate afraid that Spain will sink. If that happens, capital markets will try to find safe havens – that is not Nokia. In such case they are fully dependent on MS lending them the money so that they can still finqnce their business.
The investment can be done with swap meaning that MS would end up getting shares in return.
What are you talking about? Nokia has almost 10 000 million in cash and equivalents. Most of the debts Nokia has are not due very soon. They are not losing money that fast and the Lumia is getting some traction towards the end of the year.
I don’t think Microsoft has very much reasons to buy Nokia. Where is the gain? Microsoft has enough patents.
They are certainly not going to buy PC manufacturers just because they make software for computers. Windows Phone is not something they would want to build since it’s easier to outsource the ownership of the manufacturing.
They are certainly not shifting focus towards the harware manufacturing if they don’t have to. The XBox is something they have to build themselves since it’s something they have to have absolute control over. The Windows Phone is not.
I don’t think Microsoft has very much reasons to buy Nokia. Where is the gain? Microsoft has enough patents.
You make us laugh! When did you ever see a multibillion industry stop for having “enough”?
That’s the sickness that plagues every “person”, whether a “real person” (Homo sapiens) or a “made up person” (Corporation entities). We can never have enough.
1. Net cash reserves are a lot lower
2. They have already stated that Q2 will be worse than Q1. Symbian is crashing.
3. Didnt MS already launch their own mobile hardware – which failed? Manufacturing can easily be put in a separate company and sold out to Foxconn and others. Btw Isnt Lumia “the first real windows phone”
It’s not about net cash. It’s about how much cash and equivalents Nokia has because they can run the operations with the borrowed money. And yes, they have to pay that back but not so soon it would kill the company in a short time.
The Q2 will be bad but it has been practically every year.
You are suggesting that Microsoft would buy Nokia to put it into a separate company? Really, Nokia is not not so valuable to Microsoft people obsessed with it tend to think.
About the patents. Enough in this context means that they don’t have any urgent need for acquiring Nokia’s patents. What would that reason be? Strenghtening Microsoft does not make so much sense. They can already use the patents Apple has and vice versa.
With what borrowed money? Are you aware that Nokia’s current credit rating and share price instability against the backdrop of a sovereign debt run make it almost impossible for them to borrow even in the short term market, no way they could tap commercial paper market.
Additionally their “cash equivalents” could well include bonds and notes from some of the sovereigns that are experiencing credit runs at the moment or previously AAA rated institutions i.e. if they need to realise them at the moment to raise money they will not get back (anything like) 100%, they may of course also include bonds and such which have risen in value – who knows, not you or I.
So the only reliable figure was the nearly Euro 5bn cash they showed at their last Quarter which has undoubtedly diminished substantially by now. It is very possible that day to day financing is becoming very tight for Nokia, I would imagine many of their suppliers have tightened up their credit terms significantly.
Go and search “mindfulmoney” for article on Nokia.
“The balance sheet strength has been the saving grace for Nokia investors until this point. However, the current performance of the group means this strength is declining every day, while the cost of restructuring will further eat into this level of protection.”
That might give you some back drop as to why their future is so opaque, they actually are marginally hopeful but very very cautious.
The Symbian had no future since the reputation was just thrashed. MeeGo was a newcomer with an UI paradigm requiring serious skills in abstract thinking. Serious troubles for the general public.
Now someone like Facebook could get a nice slice of Nokia for a 10 million. They wouldn’t have to buy the whole company. Just get an Samsung after your current Nokia phone breaks.
sorry, what are you saying?
“MeeGo was a newcomer with an UI paradigm requiring serious skills in abstract thinking. Serious troubles for the general public.”
Really??? I think that applies to WP more than MeeGo-Harmattan.
When you use the MeeGo it’s required for the user to understand the consept of several pages existing and the consept of moving between those in a way that is not similar to anything else. You have to understand how the multitasking works and while that’s very easy for someone used to hard core computing it’s not so easy for an average user. Symbian suffered from a same problem resulting programs left open. The consept of closing programs by moving a finger to some specific direction does work but it’s really something not so natural.
WP does not suffer from most of the problems MeeGo had with the UI.
Sure, you are a pro so it will be hard for you to understand how something like this can be really frustrating compared to the icons people are used to. It’s actually a nice consept to call the icons tiles while making them grow in size. The way to use those remains pretty much same as with the traditional icons.
And, I don’t probably have to mention what people do when they get confused with some machines. Can’t do that with the MeeGo. That’s just frustrating for an average user.
Huh? N9 is so easy to use. What the hell are you on about? Unless you think most people are really so mentally challenged as to get so frustrated by the Swiping motions on N9.
Easy for you and me.
Well, most tech people considered Symbian’s UI very well done back in 2009 long before the Symbian^3 was released. They told us that there was nothing wrong with it. MeeGo is better but too abstract.
And that one crucial thing providing better user experiance is missing from it.
Abstract, riiiight, you forgot to add “IYO”.
Usability/UX’s are highly subjective…
Your posts (in almost every story) seem to suggest you haven’t used it for a extended period.
I wouldn’t be surprised if you haven’t used WP7.5x heavily either.
LOL, Facebook’s dreaming…
Maybe some kind of MS/Facebook scavenge.
I hope to god that doesn’t happen. I love Nokia, but I can’t stand facebook. A facebook phone to me is the most pointless stupid thing ever. Who needs a facebook phone when other phones have amazing facebook integration? Enough facebookness, let them stick to social networks.
thanks, but no FB for me… I consider it plain time wasting. One can do 10000 times more productive stuff (or just go to the gym / swimming pool) instead of chatting / posting there.
That is, I won’t purchase any Facebook phones, not even if they’re Finnish products. They are simply of no use for me.
OH GOD NO. PLEASE NO
Pretty much all the comments I have read about a facebook phone whether on Tech blogs or mainstream news like the BBC – the majority of voices are totally against a facebook phone.
i think that an n9 events screen would be suitable for a facebook phone
except that it does not show ads on it, which is currently the biggest problem for FB in mobile.
They need to justify their market cap somehow, since the earnings logic at the moment is limited.
my bet is Android go Fb
I laughed , when i read dat on computerworld. So better share it with Mynokiablog, so readers can laugh at it
Ludicrous idea to begin with, I must say. There are some funny little clauses with Nokia shares to begin with, though. Own over x % of shares, you are essentially forced to make a bid for the rest of shares as well and stuff like that. Landmines, so to speak.
And you know what? Paul Amsellem is the ex DG of Nokia France
look on Linkedin !
That’s absurd and Facebook buying RIM is even more absurd.
Actually I could see FB buying RIM and using BB messenger to integrate FB chat to the next level; at least that’s reasonable.
Of course this will never happen. Jay, dude, tag this post as funny stuff man. I see some people are actually believing it.
The only thing that worries me is that facebook has money… a lot of it.
considering how FB shares have been falling since they released the IPO they better buy it quick before they don’t have the money
Elop has killed Nokia so hard. When will they sack him?
WTF …… They need not buy a phone maker to have a facebook phone … they just need a partnership. I think it might just be rumor … FB obviously is close to microsoft and now microsoft is with nokia…. which means FB might get into partnership with nokia to build a FB phone … no buying and all will happen …. this is some stupid misunderstanding i guess
A partnership would sound the most reasonable.
Apple prefers twitter
Google prefers google+
Microsoft prefers facebook.
Facebook and Nokia would have to deliver something compelling otherwise, there’s no real need for a separate phone just for facebook.
Another relevant partnership comparison here might be Google and HTC/Samsung with their Nexus models.
Here Facebook would be using WP8 ? and as Ravi said, in that case Nokia would be as natural choise. Just like Samsung was for Google.
I could see something with FB+WP+Nokia branding popping up within a year or two.
Facebook phone if ever is materialize is a joke. I would never buy a phone with facebook tag on it.
Facebook buying Nokia or Opera for that matter does not make sense to me. Facebook should rather try to be available on all platforms as the value of the company is in the network effect it creates. Buying a specific browser or phone company will not support the network as it can be seen as eating in to possible partners business and backlash on Facebook. I think this is the main problem of Googles purchase of Motorola. Such moves ar bound to make other partners nervous.
http://www.pcmag.com/article2/0,2817,2404986,00.asp
Unfortunately I don’t believe it either.
A buyout would be the best thing that could happen to the people that actually matter (Nokia shareholders and especially the people that Nokia employs). Sadly Nokia just propably is not worth buiyng anymore. Still, it’s good for the remaining few fanbois who get to cheer for their idol for a year or so longer.
It shows how fragile Nokias position is right now. Its looking ripe for a buyout..If not MS , maybe someone else. The point is , Nokia doesnt have to bought outright, just its controlling share base.
+1.
There is so much no to this… Just
NOOOOOOOOOOOOOO!!!!!!!!!!!!!!
First rumour was the Opera Software.
The second was a (new) Facebook phone.
And now the Nokia…
I’m pretty sure the next rumour will be something like that the Facebook is going to buy the Moon.
“Nokia’s worth more than that just for the patents alone.” – Not true!!
“According to Sisvel, it has purchased 47 patent families—comprised of 450 separate patents and applications—that were originally filed by Nokia. 350 of these, Nokia had deemed “essential” to multiple wireless standards including GSM, UMTS/WCDMA and LTE. A large number also reportedly deal with video encoding optimization—understandable given Sisvel’s extensive existing patent pools of video-related technology.”
http://gizmodo.com/5876068/nokia-just-sold-hundreds-of-its-essential-wireless-patents
First of all Nokia still owns those patents, Sisvel simply makes sure companies don’t infringe on them as part of an agreement. Also I think the idea that an American company ie; Microsoft, Facebook can just ‘buy’ Nokia is so damn insulting it makes me sick. These ‘analysts’ are acting as if Nokia has no chance of succeding and has no new innovations or competitive products. They only recently lost the title as #1 cellphone manufacturer, they shouldn’t act as if they were never successful.
That was Nokia before Elop. It no longer matters how much innovation and competing products Nokia can create, they are unable to deliver them on WP anyway, see 808.
147 years of history in Nokia is worth more than that.
‘Like’
Then maybe the new Facebook and Nokia company will be called Fokia, and the ringtone will be “A******, F*** yeah!” IMO that should be the Facebook Anthem. :-p /jk
Ahh maybe this is the “next billion” strategy. Give Nokia up for “billions” to an “Internet” company.”Internet for next billion”
Facebook is a company that has a goal of evolving and not being stagnant. I really do not find any reason as to why this is such a stupid idea! If Fb buying NOkia intead of MS then wouldn’t that free them from WP OS?!