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#1 Boz

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Posted 03 July 2013 - 15:02

 

Here is a puzzle: Nokia’s cash position has suddenly shrunk from 4 billion euros to 2-2.5 billion euros… but the company’s share price is higher than it was before Nokia announced it will spend 1.7 billion euros to buy full control in Nokia Siemens Networks. Wall Street is feeling perfectly calm even though it now looks like Nokia’s cash burn during the second quarter may have been as high as 850 million euros. Why aren’t investors freaking out about A) the cost of the Nokia Siemens Network acquisition and B) the confession about the handset division cash burn level during spring? At this rate, Nokia may run out of cash during the summer of 2014.

The most plausible answer is that Wall Street is now convinced that Nokia is going to sell its handset unit.

There is no reason to worry about the cash burn rate or current cash reserves if the phone division will be gone by Christmas. Spending nearly half of its cash reserves on the NSN acquisition was such a bold gambit that few people believe that Nokia would have made it without having a clear plan for exiting the phone business.

 

http://bgr.com/2013/...-sale-analysis/

 

Yep, they are done.. 




#2 Athernar

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Posted 03 July 2013 - 15:06

Nope.



#3 +techbeck

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Posted 03 July 2013 - 16:37

If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

#4 Mr Nom Nom's

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Posted 04 July 2013 - 10:59

http://bgr.com/2013/...-sale-analysis/

 

Yep, they are done.. 

 

 

Nope.

 

Why wouldn't they sell it off and why are they done? They've now own the telecommunications division that actually produces some pretty damn good equipment that vendors who are sceptical of Huawei or ZTE are looking into purchasing. IMHO they're better off selling their consumer devision which is the most fickle and problematic side and focus back on the back end products that carriers rely upon.

 

 

If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

 

Agreed; I could see Microsoft buy out the division and then let Nokia go back to providing infrastructure for carriers. Revenue wise I could see them maybe merge with Alcatel-Lucent so that it would have the benefits of experience in the fixed lined back end technology (Alcatel-Lucent is heavily involved in ADSL and fibre optic gear) whilst Nokia has strengths in the area of cellular technology. It would be a win-win for shareholders and consumers alike.



#5 Torolol

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Posted 04 July 2013 - 11:09

burn baby burn !!



#6 +FiB3R

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Posted 04 July 2013 - 11:09

So an analyst speculates on what Wall Street might be thinking, and people start running around screaming that the sky is falling!?

 

Gimmie a break.



#7 MDboyz

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Posted 04 July 2013 - 16:19

I guess some people still believe in anal.yst ....



#8 Praetor

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Posted 04 July 2013 - 16:30

i doubt Microsoft would buy (at least now) Nokia's division; it costs a lot and Microsoft is still recovering from the Skype purchase.

 

Also i don't think that Nokia is done. At least not now, since one big part of their clients are the very low end mobile phones, that most developing countries still have in masses.



#9 +zhiVago

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Posted 04 July 2013 - 16:43

Of course,  Wall Street acts in the best interest of the American corporations. It's 100% natural.

 

I also think this is a warning for Nokia to get out of this mobile business and continue with the other networking stuff or get crushed altogether. It's very easy to do with ratings' manipulation since the top three rating agencies are also American.



#10 BetaAddict

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Posted 04 July 2013 - 16:48

If they sell, it would be to Microsoft. And Microsoft would keep the name most likely. Would be a Microsoft company like Motorola is a Google company. The name Nokia won't go away. At least not any time soon. Just changing owners.

 

If they are going to buy it, MS will probably use it's own brand the same as they do for all their other hardware and use it as an opportunity to rebrand it as a new era of phones.

 

With the case of Motorola, Motorola was initially split into two companies and it was the Motorola Mobility half that Google bought out. So in this process, Google managed to get all the intellectual property rights since they bought the whole company.

 

i doubt Microsoft would buy (at least now) Nokia's division; it costs a lot and Microsoft is still recovering from the Skype purchase.

 

Also i don't think that Nokia is done. At least not now, since one big part of their clients are the very low end mobile phones, that most developing countries still have in masses.

 

What was there to recover from the Skype purchase? They have over $73B in cash sitting around waiting to be put to use, so financially they didn't take a hit at all. One could even argue that $8B was a cheap buy for a VoIP heavyweight. They have already integrated Skype into Windows, WP8, and XboxOne, even redesigned some of the apps for other platforms to fit the metro theme. So much of the transition and integration is pretty much complete.

 

Financially, Nokia just does not have the resources to compete in the US and European market the same way they Samsung, HTC, and Motorola can. This alone was the reason they got into the $2B deal with MS to make WP8 phones exclusively, because they were getting desperate after lagging so far behind with Symbian.



#11 HawkMan

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Posted 04 July 2013 - 16:54

Unlikely, the Lumia line is already growing and making money and the asha line is quite sizeable in developing countries.

#12 Enron

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Posted 04 July 2013 - 17:09

Here's Boz agreeing with another nonsense analyst.



#13 HawkMan

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Posted 04 July 2013 - 18:07

Here's Boz agreeing with another nonsense analyst.


Only analysts who don't say bad stuff about android ;)

#14 vcfan

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Posted 04 July 2013 - 18:25

don't be scared homie



#15 Yusuf M.

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Posted 05 July 2013 - 05:53

I doubt it. They've invested a lot into the Lumia line of devices and their Asha line is doing well in developing countries.