Press Release: Nokia D&S Sale to close in April – “Next Billion via Nokia Mobile Phones”

| March 24, 2014 | 32 Replies

MNBIMG_3908Nokia X coloursNokia has posted a press release whilst MS has published a blog post regarding the sale of Nokia’s D&S to MS which is expected to close in April. MS notes that they’re waiting approval in a few final markets. MS are also looking to introduce the “next billion” to Microsoft ia Nokia mobile phones. Next Billion used to be Nokia’s phrase at catching the entry level users in the developing markets. Nokia notes that the wait is due to anti-trust authorities in Asia, and it is not connected to the tax issues in India.

 

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Nokia expects the sale of substantially all of its Devices & Services business to Microsoft to close in April 2014 .

Espoo, Finland – Nokia today announced that it now expects the transaction whereby the company will sell substantially all of its Devices & Services business and license its patents to Microsoft to close in April 2014. This compares with Nokia’s previous expectation on the transaction closing in the first quarter of 2014, which Nokia communicated when the company first announced the transaction on September 3, 2013. Nokia and Microsoft remain committed to the transaction.

As previously communicated, the closing of the transaction is subject to regulatory approvals and other customary closing conditions. Nokia and Microsoft have already received most of the required regulatory approvals, including approvals from the European Commission and the U.S. Department of Justice. Furthermore, Nokia and Microsoft continue to make good progress related to the closing conditions and integration planning. However, the transaction is pending approvals from certain antitrust authorities in Asia which are still conducting their reviews.

Nokia and Microsoft continue to be confident that the transaction will close, resulting in the sale of substantially all of Nokia’s Devices & Services business to Microsoft, and both companies are working diligently to close the transaction as expeditiously as possible.

Nokia reiterates that ongoing tax proceedings in India have no bearing on the timing of the closing or the material deal terms of the anticipated transaction between Nokia and Microsoft.

Source: Nokia, MS 

Cheers Alvester for the tip!

Category: Nokia

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Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com
  • akbar

    I don’t wanna cry, but…… :’(

    • SLAYER

      The end of an era.
      :(

  • sbw44

    Sad day it is!

  • Roman

    That MS paid for Nokia D&S less than what it did for Skype is really insulting. Even Google paid more for motorola (not to mention Facebook for whatsapp).. What gives really?

    • Random Random

      Why it’s insulting?

      Unfortunately D&S was not worth more.

      Skype was the business of the future. D&S was the business of the past.

      • Roman

        Care to give some numbers .. how much revenues each generated and what would be the trajectory?

        • Random Random

          Sure.

          Any company was able to made a bid for D&S. Unfortunately it was not worth more so they didn’t.

          • Roman

            I thought so.. just talking out of your a**..

            • Random Random

              Well.

              You just fail to understand this.

              D&S was making losses.

        • Sefriol

          “Even Google paid more for motorola.” You are alternating the truth. That was back in 2011. If you look at the numbers, Google just sold Motorola’s devices part (which is almost same as Nokia’s D&S) for 2,9 billion dollars and they also licensed patents (like Nokia). That’s almost half of the price that Nokia got from Microsoft.
          In addition, software business is a lot different compared to hardware. Software companies are much more flexible and still manage to hold huge customer bases. Even SuperCell generated more revenue last year than Nokia. A company that has only 2 games in appstores.

          • Viipottaja

            “Even SuperCell generated more revenue last year than Nokia. A company that has only 2 games in appstores.”

            Wow, that’s an interesting comparison, juxtaposition. Quite illuminating and did not know that before – thanks!

          • Random Random

            Yes.

            Some people have this weird opinion how hardware manufacturers should be valued higher than software developers.

            D&S’s core was a hardware operation.

            Some people seem to have hard time understanding how companies like Supercell can make that much profit compared to the old Nokia.

            In 2013 Supercell did 349 million while D&S failed to come even close.

            • Roman

              It’s not only about profits. How much profit did Skype make? Or whatsapp?

              • Random Random

                Of course not.

                The best way to valuate a company is to sell it.

                That gives a real world information about how much someone is willing to pay.

                Maybe you have a better method?

          • Roman

            Care to compare the market shares of Moto to Nokia? or revenues for that matter? How about the research arm that Google kept from Moto?

          • Roman

            Also MS gets to use Nokia patents for free (not counting the ones that got effectively transferred to MS pre-sale)

    • Viipottaja

      A couple of factors were probably that Nokia keeps a lot of the IP/patents, and is only licensing the use of the Nokia brand name to MS also.

      It is conceivable that the fairly large network of manufacturing facilities was also viewed as much a liability as it is an asset.

      And, of course, Nokia is/was struggling with the turn around and losing of market share in the low end – as was/is Moto of course.

      • Roman

        I’m not really disputing the market value of Nokia. The value is determined of course by how much money one is willing to pay. I’m just sad, as everyone else here except RR, about the demise of a company that lost so much value so quickly as to become something that could be bought for peanut (of course it’s not the whole company but still) ..

        • Random Random

          If you want to be sad about this, it might be a better idea to complain about the reasons why D&S lost the value. Not the purchase price.

          Then again you may not want to do that since there was no actual proof of 112 resulting with the collapse and loss of the value of the D&S.

          But then again we have proof that Nokia was failing long before 112.

          For example Nokia made much less profits in Q4 2010 than they did in Q4 2007. Because they were already collapsing.

          • Roman

            You are sick. get some help.. lol

            • Random Random

              Well.

              You are quite arrogant if you think like that.

              But then again, you may be just ignorant.

            • krishna6233

              He is educating you!dont you like to get some free education?

              • Random Random

                Well.

                Some people can’t be educated.

          • talsur2002

            reasons why D&S lost the value
            1. Ineffecient decisions of elop
            2. Announcing that symbian is dead when it was very much alive
            3. then again decisions made by elop to make Nokia to lose value as it can be sold at the depreciated price

            • Random Random

              Wrong.

              There is no actual proof that 112 resulted with the collapse.

              But there are proof that Symbian was already collapsing in 2009 and 2010.

              • Shaun

                Sales of Symbian handsets increased all the way through 2009, 2010 and into 2011.

                Nokia’s revenue from combined mobile phones and smartphones, what later became D&S was largely upward or flat during that period. Profits dipped largely because they were spending more and more on R&D (ie. software development).

                Elop cut R&D massively of course giving Nokia a bit of breathing space while Windows was supposed to increase in popularity. It didn’t and sales crashed from 9.5 billion (Q4 2010) to 2.6 billion (Q4 2013).

                And yet people still claim “There is no actual proof that 112 resulted with the collapse”. It’s pretty obvious that the choices made back then were the wrong choices. Many of us thought so then and sadly were proven correct.

                • Random Random

                  As far as we know, Nokia announced 112 memo and the sales started to collapse even in the low end.

                  Where is the proof that the memo or the strategy change was the reason for this? The actual proof.

                  Maybe the memo was published because Nokia saw the sales collapsing in the low end.

                  This is the problem with 112 theories. 112 and the collapse of low end unit sales happened on the same period of time, but there is no actual proof of 112 being the reason for that.

                  However we do know that Nokia’s profits were shrinking. You say it happened because of R&D expenses. Are you also saying they could have managed with less R&D?

                  The real problem was that Nokia was losing hard in the high end. The competition was clearly outselling Nokia there.

                  • Shaun

                    “Where is the proof that the memo or the strategy change was the reason for this?”

                    There’s no way of proving the strategy change caused it without going back in time and playing out the same scenario with another strategy of course but you can’t exactly claim the strategy they did choose was a success!

                    “Are you also saying they could have managed with less R&D?”

                    Yes and No.

                    Yes, they could have dialled back Symbian a lot, ditched their effort to port Qt to Symbian which was delaying Qt, ditched S30/40/Asha development and concentrated on MeeGo and Meltemi.

                    No, they needed to spend on R&D to catch up with Apple and Google.

                    I think everyone was staggered that they had so many Symbian engineers in the company when they announced the cuts. That was an R&D empire that really had grown too big but on the other hand, they weren’t yet spending enough on their next gen platforms.

                    • Random Random

                      If there is no way of knowing 112 was the reason, why to blame Elop?

                      As far as we know, Nokia might have been unsalvageable and there may not have been anything Elop or anyone else could have done to save D&S.

                      The strategy they picked at 112 may not have been a success but how do we really know there would have been a better one available?

                      When I wrote here back in the days about how many engineers they had developing Symbian, I was not believed. I was not believed when I said that MeeGo was certainly not a small project with just few hundred people. As Jorma Ollila’s book revealed, there were almost 2000 people working in the MeeGo team.

                      What’s apparent is that Nokia definitely didn’t know how to do software R&D.

  • coop

    Microsoft overpaid.. But they tend to do that more often than not.

  • Imarius

    http://www.youtube.com/watch?v=TTpGyR8CDXw

    brilliant phones, enough said.