That Microsoft-Nokia merger you've been predicting? It's no go
On The Register right now. As I predicted when Elop took on windoze phone, Nokia is dead...
Microsoft's acquisition of Nokia's mobile phone business – the deal you probably assumed would happen sooner or later – has been scuppered before talks were even made public, according to a new report.
On Wednesday, the Wall Street Journal wrote that Microsoft has been engaged in "advanced talks" to snap up the Finnish mobile maker, but that those discussions have recently broken down and are not likely to resume.
Redmond reportedly couldn't negotiate the price it wanted for Nokia, which currently has a market capitalization of around $14.3bn.
What's more, Microsoft was said to be leery of Nokia's weak position in the smartphone market, where it currently trails behind Apple and Samsung.
The Finnish firm's sales certainly are in the dumps. Once it was the world's largest seller of mobile phones, but its most recent quarter saw its shipments down 32 per cent, year over year, and it shipped just 6.1 million smartphones in total, compared to Samsung's 60 million.
The irony, of course, is that this downturn comes in the wake of Nokia's 2011 strategic partnership with Microsoft, in which Nokia CEO (and former Microsoft exec) Stephen Elop agreed to make Windows Phone the exclusive operating system for Nokia smartphones.
In light of that deal, it wouldn't be hard to argue that the deficiencies that make Nokia an unattractive acquisition target for Microsoft are actually Redmond's own fault. Recent Gartner figures show Windows Phone hanging on to just 2.9 per cent of the smartphone market – a smaller share even than BlackBerry's.
That's the best news I have heard so far. Long term Nokia will do much better staying independent. Nokia fist priority today (besides smartphones which they are dealing with), is NSN. They need to buy as much as they can (without endangering Nokia future) from Siemens, and try to control (as much as possible) who is going to buy the rest.