Microsoft considered buying Nokia, still mulling options

A new report indicates Microsoft considered buying Nokia in late 2011, but eventually walked away from the deal.

According to The Register, a source from Microsoft told the site "Microsoft was given access to Nokia's books late last year in an attempt to evaluate which parts, if any, were worth acquiring." After Microsoft looked at Nokia's financial information, the source said, it walked away from the deal. The site also goes on to state that Nokia wasn't actually interested in selling itself and Microsoft wasn't interested in buying – at least not at the time.

The company would have to pay a premium for Nokia, which is something Microsoft wasn't interested in. Instead, The Register says, it would be easier and more cost-effective for Microsoft to simply wait for Nokia to run out of money before buying the company. Nokia's been struggling financially of late, not shipping as many Lumia smartphones as previously predicted, which resulted in the company's stock dropping to a 15-year low. The company's stock has a 52-week high of $7.38 and a low of $2.61, which it hit earlier this month; Nokia's revenue and operating income were also both down in 2011.

With Microsoft preparing to release Windows RT and Windows Phone 8 later this year, it's unclear if the company is still considering purchasing Nokia, as many analysts have predicted. Nokia is believed to be running out of its financial reserves, as many analysts have stated the company will run out of money in 2013. In the past five financial quarters, Nokia has used up 2.1 billion Euros; as of last month, the company had 4.9 billion Euros in its reserves.

Via: The Next Web
Source: The Register

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39 Comments

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Its possible. Nokia is a key to Windows phone success ATM, they have around 60%* of the market share of windows phones being sold. That's a good number.

But its all about how many units are being sold overall. That's not good.

Microsoft could buy Nokia, or instead of that they could just increase their help by injecting more money into Nokia annually (currently at 1B).

MS is not interested in buying Nokia. They're not interested in hardware at all except their xbox line which I think is still open for discussion. I don't quite believe these rumors as it does not fit the way MS works. They'll certain help to sustain Nokia during the transition but they rather not buy them. They prefer to have multiple hardware vendors using their OS. Everything is about them ruling the OS on all hardware/platforms. That's the ultimate goal. Buying a hardware company does not fit the profile and would only be pursued in dire circumstances.

McKay said,
Wait for Nokia to crumble, absorb them and then begin shipping phones branded "Microsoft"

If someone else does not snap Nokia first................... if the price hit a certain low other companies could be interested................... just consider Nokia patents portfolio....................

Why is it even when you have a good product you can't sell it? Simply put it's all Apples fault! Apple has done to the entire tech industry what Intel did to PC Oems in the late 80's. They made it all about the brand instead of technological merit and now its all about what is cooler to be seen with rather than what the Technological specifications and ease of use are. Sadly its not about the best technology selling the most units it never was and never will be because most people dont understand that. Its the fact that Microsoft isn't cool and nor is Nokia! I have had iPhone junkies pick their jaws off the floor after watching Windows Phone 7.5 and its beautifully designed Apps on my Nokia Lumia 900, but it means **** to most people regardless because its not what people see as the coolest item on the block! Its not a technological problem its an image problem!

Lumia is the most advanced technology?

Have you actually looked at what it lacks? There's a literal list of tens of features that are simply completely and utterly missing that were in my Symbian phone TEN ****ING YEARS AGO.

Miuku. said,
Lumia is the most advanced technology?

Have you actually looked at what it lacks? There's a literal list of tens of features that are simply completely and utterly missing that were in my Symbian phone TEN ****ING YEARS AGO.

It should all change in a few months with WP8

Miuku. said,
Lumia is the most advanced technology?

Have you actually looked at what it lacks? There's a literal list of tens of features that are simply completely and utterly missing that were in my Symbian phone TEN ****ING YEARS AGO.

Number of features is not the same as advanced technology.

HawkMan said,

Number of features is not the same as advanced technology.


True, it also has worse camera, worse battery and worse CPU than most other phones.

So it kinda fails on those sectors as well.

Miuku. said,
Lumia is the most advanced technology?

Have you actually looked at what it lacks? There's a literal list of tens of features that are simply completely and utterly missing that were in my Symbian phone TEN ****ING YEARS AGO.

Can you back that up with details?

Miuku. said,

True, it also has worse camera, worse battery and worse CPU than most other phones.

So it kinda fails on those sectors as well.

The battery actually isn't bad in my experience. The camera could be better, but a lot of it comes down to the settings used. The CPU hasn't been a problem for me either but I guess these days you have to have quad core.

Enron said,

The battery actually isn't bad in my experience. The camera could be better, but a lot of it comes down to the settings used. The CPU hasn't been a problem for me either but I guess these days you have to have quad core.

The battery performances dramatically change depending by what firmware you have: the one of my Lumia 800 achieved a "good" autonomy with build 12070, before I was use to run out of power by mid afternoon and I do not surf internet a lot, just checking emails every hour; not many phone calls too.
The problem s there are people with older build because some carriers did not release the latest yet.

Miuku. said,

True, it also has worse camera, worse battery and worse CPU than most other phones.

So it kinda fails on those sectors as well.

By most other phones I guess you mean the N8, since they have some of the best cameras out there up with the Xperia phones. though not as good as N8 unfortunately. however there will soon be a new Nokia WP phone with their new camera technology so.

I'm starting to think you don't really know anything about Nokia's WP phones except they're WP and you don't like WP.

Miuku. said,

True, it also has worse camera, worse battery and worse CPU than most other phones.

So it kinda fails on those sectors as well.

As for battery, what "most other" phones are you comparing to. WP phoens have so far beaten every android phone, and WP manages BT WLAN and all that beautifully by itself to keep this battery time, unlike android where you need to have a widget out to constantly turn off BT Wlan and 3G to try to make th ephone last a full day with a little use.

yeah, compared to an old symbian phone with 1/10th the power and capability, it's got shorter battery time.

Elop has completely his mission then - Infiltrate and replace key personal in Nokia with ex-Microsoft employees, kill the share price with "Burning Platform" speeches, gut non-Microsoft platforms, then hand over the company to Microsoft for a tiny percentage of its previous value.

Sounds about right. If I was a Nokia shareholder, I'd be ****ed at the direction Elop has taken them.

simplezz said,
Elop has completely his mission then - Infiltrate and replace key personal in Nokia with ex-Microsoft employees, kill the share price with "Burning Platform" speeches, gut non-Microsoft platforms, then hand over the company to Microsoft for a tiny percentage of its previous value.

Sounds about right. If I was a Nokia shareholder, I'd be ****ed at the direction Elop has taken them.

Do you sell tin-foil hats or...?

I always repeat this on Trojan horse comments, if there was any successful trojan horse, it was Eric Schmidt on Apple's board.

simplezz said,
Elop has completely his mission then - Infiltrate and replace key personal in Nokia with ex-Microsoft employees, kill the share price with "Burning Platform" speeches, gut non-Microsoft platforms, then hand over the company to Microsoft for a tiny percentage of its previous value.

Sounds about right. If I was a Nokia shareholder, I'd be ****ed at the direction Elop has taken them.

Why would MS want to buy a Nokia that has run itself bankrupt, is no longer selling phones and has lost all faith from the consumer.

oh wait, that's right, you don't have a clue what you're talking about again,

if MS does buy them they would have done it earlier or logn before they drop flat and has no worth. And while nokia us still dropping in valie due to a dissapearing symbian market. the WP line is starting to sell really well, and will soon if not already offer a valid bottom line and even a solid base once it picks up even more.

HawkMan said,

Why would MS want to buy a Nokia that has run itself bankrupt, is no longer selling phones and has lost all faith from the consumer.


Sounds like a perfect moment to gain ownership of heaps of cheap patents.

xpclient said,
Acquisitions won't prevent crappy products.

The Lumia line of products are excellent phone so i don't know what you are talking about...

yardmanflex said,

The Lumia line of products are excellent phone so i don't know what you are talking about...

He still uses Windows XP, no need to be sad, he's a troll.

Drossel said,

He still uses Windows XP, no need to be sad, he's a troll.

Latest =! best and Critic =! troll Learn your ABCs again.

xpclient said,

Latest =! best and Critic =! troll Learn your ABCs again.

But nonsensical and factually incorrect posts do generally equal troll...

M_Lyons10 said,

But nonsensical and factually incorrect posts do generally equal troll...

To a fanboy any post that doesn't say "I love ___" appears nonsensical. And even when facts are provided, they are in denial.

xpclient said,
Acquisitions won't prevent crappy products.

It reads: "I've never held a WP nokia in my hand and don't know what I'm talking about."

xpclient said,

To a fanboy any post that doesn't say "I love ___" appears nonsensical. And even when facts are provided, they are in denial.

I tried really hard, and re-read your "crappy products" post several times, but I failed to find these "facts" you mention. All I found was your subjective opinion that you were trying to state as fact. In other words, a troll post.

This is a shame. I really like the new handsets Nokia released recently, and I was under the impression that they couldn't even keep the Lumia 900 stocked due to it selling so well. Why did it take MS partnering with them to start selling phones again? I don't recall seeing any compelling designs from Nokia since before iPhone to until the Nokia/MS partnership. With a drought like that, its no wonder they're burning through cash reserves.

As the article states, MS can now just wait until the company has no cash and is staring bankruptcy in the face and buy them on the cheap. Now, the question of a new Microsoft/Nokia venture is, will they actually leverage said venture in a more compelling way than Google/Motorola has? Only time can tell.

There is one problem with waiting for the company to run out of money. by then they're also out of customers, reputation and designers.

It's not a bad strategy though, you just have to wait for the right moment and not git to late.

Then again as it is Nokia is gaining repuation and status again, though losing value because of the still dropping massive symbian market they used to have. and they're starting to build steam with WP7, and if it keeps going like it is, they may soon be going up in value again.