Decision day for Nokia as shareholders set to vote on Microsoft deal

It’s been a couple of months since Nokia revealed that it had agreed terms for the sale of its devices business to Microsoft. The announcement came as a shock to some, despite others predicting for some time that such a deal was inevitable, given the increasingly close relationship between the two companies since Nokia had adopted Windows Phone as its smartphone OS.

There is still the matter of shareholder approval to consider, however, before the deal can be closed. That approval is expected to come today, as the company holds a meeting with shareholders which will see them vote on whether to accept the sale and the terms of the deal announced in September.

As Reuters notes, shareholders are not expected to reject the deal, although there is a chance that some dissenters may use the opportunity to voice their opposition to the deal. However, it is believed that Nokia may be planning to issue a dividend to shareholders, the promise of which may well be enough to quell any significant opposition. Nokia stands to pocket €5.44bn EUR ($7.35bn USD / £4.57bn GBP) from the deal, which will also see the company licensing some of its patents and services to Microsoft.

Nokia’s share price has increased considerably since the planned sale was announced. As you can see from the graph above, Nokia's share price was $3.90 going into the weekend before the deal was revealed; by the end of trading on September 3 (the day of the announcement, marked by the dot on the graph), the share price had soared 31% to $5.12. At close of trade yesterday, its shares were valued at $8.06 - more than double their value less than three months ago. 

With a dividend payment expected, frustrated shareholders will likely be keen to enjoy some of the spoils after seeing the company’s value plummet in recent years, as it struggled against increasing competition in the smartphone space.

The shareholder meeting begins at 1400 local time (1200 GMT) in Helsinki. Subject to shareholder and regulatory approval, the sale is expected to be completed early next year.

Source: Reuters | image via GeekWire share data via Yahoo 

Report a problem with article
Previous Story

Google to remove image from Google Maps that shows a murder investigation

Next Story

Xbox One controller: $100 million to develop, almost had smell-o-vision and pico-projectors

12 Comments

Commenting is disabled on this article.

I Think that Microsoft should have bought the Nokia Here devision, one of the main reasons I bought a WP was Camera + Office + Nokia Here Drive+

If we see Nokia Here Drive+ on Iphones and Androids, this will be realy bad to WP.

Josh_LosAltosHills said,
should be a no doubter. I think MS is overpaying for Nokia but they have the money so why not.

Many think they are underpaying for the deal as it is just starting its fruition (estimated 11-12 million sold 4q!!)

huge opportunity for nokia? they are broken

its a good move for microsoft, and a bit desperate to keep their wp alive

anarkhy said,
huge opportunity for nokia? they are broken

great idea - sell their WP business to Microsoft, make a bucketload of money, 6 months down the track start an android phone division

dvb2000 said,

great idea - sell their WP business to Microsoft, make a bucketload of money, 6 months down the track start an android phone division

I seriously do not understand this idea, when hardly anyone is making money from Android (other than Samsung)?

Also, MS would be buying the Nokia devices brand, you do understand what this means don't you?

dvb2000 said,

great idea - sell their WP business to Microsoft, make a bucketload of money, 6 months down the track start an android phone division


6 months down the road there won't be an Android. Apple got the go-ahead from the California Court today to issue injunctions against Android devices. Android manufacturers already have to pay license fees to Microsoft. Now they'll have to pay Apple too. And Nokia are progressing through the courts with their case as well. Android is already costing manufacturers up to $35 per device. When that hits $50 it's all over. RIP.

duddit2 said,

MS would be buying the Nokia devices brand, you do understand what this means don't you?

Do you?

They are buying the current "devices" division and a "Lumia" brand name.

Neither of which has much value to Nokia. A new "Nokia" brandname would be easy for them to create with a new android phone.

Until Nokia get rid of the idea that they need to charge premium prices for their devices, they will continue to suffer poor sales, and consequently have difficulties writing off any development costs and making money.

Get rid of the American "greed is good" culture, and instead create what people want for a reasonable price, and they will once again become successful.

dvb2000 said,
Until Nokia get rid of the idea that they need to charge premium prices for their devices, they will continue to suffer poor sales, and consequently have difficulties writing off any development costs and making money.

Get rid of the American "greed is good" culture, and instead create what people want for a reasonable price, and they will once again become successful.

Under which rock did you live for the past year?
Nokia is making a range of devices, powered by Windows Phone for all price levels.
Just have a look at Lumia 620 (~£150, $99 on AT&T). It is a great entry-level smartphone at a very affordable price!

Android is getting crushed because of the patent wars and only Samsung is making money. for Nokia to make money this way, they need to provide the same awesome apps they are amazing at creating and then make very expensive Android phones or make some nice deals with MS and Apple - the latter you can forget all about.

nokia has made no secret that they are exiting the devices business, the 'Nokia' 'Lumia' and 'Asha' brands are all being leased to microsoft as part of the deal, the new department at microsoft will build Microsoft branded Lumia devices and Nokia branded Asha devices for a set period of time (I forget how long the license lasts).

Nokia as a business will be concentrating on their network division, which they recently bought the half they didnt own off from Siemens. They have no plans to make any devices and under the terms of the sale wouldnt be able to under the licensing deal they are signing with Microsoft anyway.....

Devmer11 said,
I'm excited this could be a Huge opportunity for both Nokia and Microsoft

Honestly, the new Nokia looks to be a solid company. Even as many saw selling the phone business as a good idea, that may have returned more value in the long term if that panned out... which it wasnt doing bad, actually it was steam rolling at 8million sold in the most recent q. Sure it ain't ballpark, but its leaps over what WP was selling, and what Nokia was selling last year in smartphones.

Anyways, I could see the stock going further up with div anouncements further upgrades by firms. 12$ is what i want, but 9$ is more realistic near term.