Something people may have missed from the NSN acquisition and job cuts news:
"Nokia today renamed the network unit Nokia Solutions and Networks after completing the 1.7 billion-euro ($2.3 billion) purchase of Siemens AG (SIE)’s share in the business. The deal gives the unprofitable Finnish phonemaker full access to Nokia Siemens’s cash. Nokia Siemens is considering selling a 500 million-euro bond to help fund a dividend payment to Nokia worth about 900 million euros, the people said."
This means that more than HALF of the entire NSN deal will be paid for by...... drumrolll..... NSN itself!
Nokia is using NSN to issue bond sales for a 900MM "dividend" payment to Nokia.
This means that NOK actually only pays 800MM out of pocket... for which they already have 500MM in bank financing to draw from.
The NSN deal may not cost NOK that much short term cash at all!
The 1700 job cuts will help keep NSN to make those 11% margins. And NOK will be able to sit back and reap all the CASH from NSN for years.
Also, for people who follow NOK closely and know their management structure, this shows just how much influence ELOP has over Rajeev Suri and NSN.
Rajeev thought the current restructuring was enough as evidenced by their 11% margin last quarter. Elop, is an American. He knows how to maximize efficiency and profits, unlike the Euro layabout, entitled corporate culture.
Guess who won. NSN will become more streamlined and efficient even if they have to get there kicking and screaming.
elop is canadien (french) or canadian (english) which ever you like but not american. But Ballmer taught him a thing or 2 about american economics so hes good to run nokia in my opinion. I just dont quite trust he has nokias best interests in mind and not msft. Ya know what I mean?.
Am I missing something here?
Nokia now owns 100% of NSN. So any money borrowed by NSN is in essence being borrowed by NOK.
There is nothing brilliant about that. It's simply rearranging deck chairs on the Titanic. Good luck in NOK convincing creditors to buy those bonds.
Elop was a director of consulting for Lotus Development Corporation before becoming CIO for Boston Chicken in 1992, which filed for Chapter 11 bankruptcy in 1998. In the same year, he joined Macromedia's Web/IT department and worked at the company for seven years, where he held several senior positions, including CEO from January 2005 for three months before their acquisition by Adobe Systems was announced in April 2005.
He was then president of worldwide field operations at Adobe, tendering his resignation in June 2006 and leaving in December, after which he was the COO of Juniper Networks for exactly one year from January 2007-2008.
From January 2008 to September 2010, Elop worked for Microsoft as the head of the Business Division, responsible for the Microsoft Office line of products, and as a member of the company's senior leadership team. It was during this time that Microsoft's Business Division released Office 2010. Eventually, at the time of his retirement, Elop was Microsoft's eighth largest shareholder.
In September 2010, it was announced that Elop would take Nokia's CEO position, replacing Olli-Pekka Kallasvuo, and becoming the first non-Finnish director in Nokia's history. On March 11, 2011 Nokia announced that it had paid Elop a $6 million signing bonus, “compensation for lost income from his prior employer," on top of his $1.4 million annual salary.
Elop's "The burning platform" is a must read for Nokia shareholders. In my opinion, NOK was nearly finished, killed by its obsession with Symbian by Elop's predecessors. Elop rescued this company from near certain bankruptcy.
This is how intelligent this person is:
The Burning Platform:
The media have remarked that the memo was a wake-up call for Nokia. BBC UK described it as “one of the most combustible and gripping documents ever to emerge from a major corporation. and the Financial Times said “With its elegant writing style and brutal honesty, the 1,200-word missive is far removed from the average management pep talk. The memo has also been referenced as a guide for other business and political leaders.
Elop is a True Leader & a well deserved CEO of NOKIA.... I won't be surprised if he will be nominated CEO of the year...but his Corporation have to be at least trading at book value.