Microsoft likely to announce Nokia deal completed next week

After clearing many hurdles, it looks like Microsoft’s acquisition of Nokia’s ‘Devices and Services’ business is complete and will likely be announced at the company’s next earnings call which occurs next week on January 23rd. Nokia has reported that its  ‘Devices and Services’ business is now listed as a discontinued operation and that its earnings call on January 23rd will break apart the three remaining business units HERE, Nokia Siemens, and Advanced Technologies, according to their press release.

For those who follow Nokia, this will be an interesting call as we will get a detailed understanding of the components that are left of the once cellphone giant. But with an additional $7.17 billion dollars in the bank, the company has a lot of cash to burn to help stabilize and expand the remaining assets.

With Microsoft now having control of the business unit, the company has swollen by around 32k employees and of course, Stephen Elop is once again a Microsoft employee. While he has been rumored to be a candidate to replace Ballmer, many believe that he is a distant third for the position.

We will be curious to see how Microsoft uses its new assets and considering that the business unit is the majority owner of the Windows Phone marketshare, the acquisition makes a lot of sense to help protect the Windows Phone brand. Of course, many will be curious to see what happens to the Normandy device that has been floating around and we would hedge that Microsoft is likely in no hurry to start selling an Android based device. While some believe that the Normandy device is the next step forward for the Asha line of products, it would be a tough pill to swallow for Microsoft to sell a product with a competitors OS.

Another interesting event to keep your eye on will be the Mobile World Congress event that takes place in February. This will be the first place that Microsoft could announce a new Lumia phone since acquiring the business unit. Seeing that Microsoft has been pulling out of major trade-shows lately, we will be curious to see if this has any affect on any Nokia planned MWC announcements.

With earnings being released by both Nokia and Microsoft on the same day, it would make sense that both companies will announce that the acquisition is complete. With a little less than a week away, we don’t have to wait too long to hear the announcement.

Thanks for the tip Jonathan!

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41 Comments

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subcld said,
I sure hope so let us put an end to "I want nokia with android"

Nokia will be able to do whatever the company wants as soon as 2016; MS bought a division of the company, not the company itself. And let us keep in mind that two years are a long time in the Mobile segment.

Yeah they bought all of the assets and personnel and patents to do with mobile. 2016 will be the year that they maybe release something if they start a stealth operation now. The problem is that they sold all that stuff because of the stock market and shareholders needing some numbers looking predictably positive for a while into the future. They aren't going to shell out the money needed to recreate everything they just got rid of because of that. If their leadership were bold maybe but if they were bold they would have stuck with their own OS and kept trying to create an ecosystem ill the bitter end but that didn't happen.

Nokia just sold MS all the things needed to design and make phones, do you really think they will start from complete zero to start making something that they just sold of??

Fritzly said,
MS licensed Nokia patents , not acquired. MS can use but does not own them.
not all of them licensed, 32000 licensed - 8000 patents sold to Microsoft and yes I do know they bought D&S only

I don't see it working out well. Nokia was a proud Finnish company and now they will be part of an American company. How does an American company successfully take over a Finnish company without at least some major issues and setbacks? I think the road to Nokia being successful under Microsoft will be long and rocky.

derekaw said,
I don't see it working out well. Nokia was a proud Finnish company and now they will be part of an American company. How does an American company successfully take over a Finnish company without at least some major issues and setbacks? I think the road to Nokia being successful under Microsoft will be long and rocky.

this isn't nokia under Microsoft. its not a separate entity that's only owned by Microsoft. its a Microsoft division now,run by Microsoft people.

derekaw said,
Yes with the old Nokia people and thats a potential problem that should not be underestimated.

where does the proud finnish company stuff come into play when Microsoft owns and runs everything? do you mean the regular employees slacking off? because they will easily be replaced.

can you describe the challenges that you are alluding to? give some examples.

Why is everyone worried about what MS is going to do with Nokia? Microsoft bought Nokia because of what they do and the engineering talent behind the devices and App development. Microsoft is going to let the Nokia management that is moving over from Nokia to Microsoft run that part of the business. I also want to remind everyone that Microsoft is one of if not the best at making very high quality hardware, look at the surface for example no one other than Apple can even touch them in build quality. Most of the other vendors make cheap junk which gives MS a bad rap.

I WILL NOT speculate at all. I am going to wait on what's next once the buyout is completed ...ahem ahem, Surface Phone made by the artist formerly known as Nokia Devices and Services ...ahem, ahem, cough, cough.

Many people do not understand what MS got for this deal: RETAIL presence in many countries where MS has almost no official presence.

All those Nokia Stores around the world now can be Mini Microsoft Stores and can feature other MS products alongside of phones...Extremely important for MS esp for Asian markets.

Crimson Rain said,
Many people do not understand what MS got for this deal: RETAIL presence in many countries where MS has almost no official presence.

All those Nokia Stores around the world now can be Mini Microsoft Stores and can feature other MS products alongside of phones...Extremely important for MS esp for Asian markets.

Man, I didn't even think about that.

Here we go...

Nokia Lumia Phone Starter
Nokia Lumia Phone Basic
Nokia Lumia Phone Premium
Nokia Lumia Phone Business Edition
Nokia Lumia Phone Enterprise Edition
Nokia Lumia Phone Ultimate

People like to laugh about this, but think about how the competition has been naming some of their devices and Microsoft's do not seem that far off base.

Kalint said,
Here we go...

Nokia Lumia Phone Starter
Nokia Lumia Phone Basic
Nokia Lumia Phone Premium
Nokia Lumia Phone Business Edition
Nokia Lumia Phone Enterprise Edition
Nokia Lumia Phone Ultimate

I think MS learned from this.

knighthawk said,
"I think MS learned from this." -- I hope for their sake they have, but I'm not so sure.

There are only 2 retail version of Windows 8 today. It's pretty obvious they have.

Figure 8 Dash said,
I hope MS starts selling unbranded devices straight from their website/store.

I think if they keep a good low end phone like the lumia 520 series, 620 series and keeps innovating on the top end with the 1020s, 1520s, they will be fine. I really hope they dont treat this as the "Surface" line in that they wanted to inspire OEMs to make better hardware. I hope they sell a ton of these things and keep the WP market going =).


The only worry I have is while Nokia was the biggest catalyst of both software and hardware advancement for Windows Phone this will slow down considerably now which will be an extremely bad thing for WP as a whole. We've seen several instances where Nokia innovation more or less forced Microsoft to advance OS and software development and that may well end.

I would see possibly more stuff coming, Pretty much the whole Nokia team is Now MS's team and will stay as a team for mobile development, they will just have more money now to do things.

Sounds good to me, this should at least allow for better rollouts of Lumia devices to more markets than this slow style Nokia has been doing. I figure they didn't have enough money to really push out large volumes of devices from the start and had to instead do it slowly as they made money in the process. That shouldn't be a issue now though with MS paying the bills, something like the next flagship Lumia with WP 8.1 should release on a large scale in lots of markets at the same time.

i do not agree with you, Nokia lauched many many models that when from the cheapest to the most innovative, im kind of scared that ms will slow down even do i support them.

thinking MS would roll anything out better and faster than Nokia is a joke. MS is THE company when it comes to slow rollouts and US only restrictions in EVERYTHING. They dont even offer the things in England and its the same bloody language.

-adrian- said,
thinking MS would roll anything out better and faster than Nokia is a joke. MS is THE company when it comes to slow rollouts and US only restrictions in EVERYTHING. They dont even offer the things in England and its the same bloody language.

The US first/only bit is one thing but slow rollouts I don't agree with at all. Even the surface 2 and pro 2 had a better global rollout compared to many Lumia devices. Look at the new 1520 and 1320 and how limited those are, same with the 1020 before. They're always released in one or two countries first and then months later some more places finally get them. That has to change for sure and I think it can now.

-adrian- said,
thinking MS would roll anything out better and faster than Nokia is a joke. MS is THE company when it comes to slow rollouts and US only restrictions in EVERYTHING. They dont even offer the things in England and its the same bloody language.

I'm inclined to agree with Adrian. Microsoft rollouts are awful for everyone except the US. Nokia have/had been pretty on the ball with their new device rollouts. Hopefully Microsoft won't screw it up.

I don't understand how Elop could be a distant 3rd for the CEO job. Microsoft's biggest challenge is getting a foothold in mobile and they just hired a guy that ran one of the largest mobile phone companies in the world for the last few years, not to mention 34,000 of his employees. I think it would be insane not to make Elop the CEO.

MS is trying to position itself as a credible hardware devices and mobile company then I think you need to put Elop in the CEO role. The way his team has grown the Lumia business every quarter is impressive, and they've rolled out innovative Nokia hardware AND services year after year while working closely with the Windows Phone team which now runs all of Windows and Xbox OS.

-adrian- said,
thinking MS would roll anything out better and faster than Nokia is a joke. MS is THE company when it comes to slow rollouts and US only restrictions in EVERYTHING. They dont even offer the things in England and its the same bloody language.

while normally I would agree but Nokia, until Elop took over would show an innovative device or feature but would take 5 years to release it.

I don't think Elop is suited to be CEO, there is a lot more to MS then just phones, way more. I think Elop would be best suited to head up the Devices division at MS.

Majesticmerc said,

I'm inclined to agree with Adrian. Microsoft rollouts are awful for everyone except the US. Nokia have/had been pretty on the ball with their new device rollouts. Hopefully Microsoft won't screw it up.

My personal thoughts on this...
There is truth that the US gets more things sooner; however, it isn't only Microsoft that does this.

When it comes to 'perception', the US market is the most important. For example, everyone assumes that the majority of the world is split between Android and the iPhone, yet is essentially only the US market that the iPhone maintains 40% marketshare.

When it comes to OS and regional support, Windows has more language and region options than anyone else.

There are MS products that do suffer outside the US; however, these products don't have an equivalent competitor. Take the XB1 vs PS4 - the XB1 doesn't have Voice command support in every language region yet, but in comparison the PS4 doesn't even try, with just a handful of voice commands in a few languages if the user buys the camera add on.

The other misconception is in licensing, for things like Xbox/Zune Music/Video - these are restrictions that are outside of Microsoft's control that vary from distributor to country/regional licensing issues.

Language support for WP8 is rather good, and potentially this will continue to increase to match the languages Windows 8 itself supports.

Last time I checked, WP8 supports over 50 languages, in comparison the iPhone/iPad supports only around 30, and even Android only supports around 35. WP8 also supports more advanced languages and character sets that are simply not fully possible on iOS or Android.

So sure, the US gets better support, but it is Microsoft's native country and it is also the showcase for the world in perceived market share.

Just because Apple rolls out the iPhone with good support in a few countries, that doesn't mean they support more countries/regions than even the 'less mature in development time' WP8, but somehow that is the public perception.

I guess it depends on the division. It took three years for MS to roll out Bing search suggestions in my country for some reason. On the other hand Outlook.com is impressively on par with the US version.

Mobius Enigma said,

<Snipped for brevity>

I don't doubt their commitment to support worldwide, but that's not really relevant here. It always surprises me how bad Microsoft have been in the past with their worldwide rollouts of products, especially compared to the likes of Apple, Samsung et al. Their support post-release after release has always been fairly stellar, all things considered, but their initial rollout plans always seem half-assed compared to the competition, favouring a region-by-region rollout, rather than a worldwide.

Looking back to things like the Zune launch, a large portion of the reason that the Zune device was a flop was because of how catastrophic the launch was. As far as I knew, it never even launched outside the USA.

As Gawicks said also, it's hard to describe to someone in the USA just how poor Bing is worldwide (http://imgur.com/BWz4hSF) compared to the likes of Google (http://imgur.com/HL2eZNn).

There are positive signs for the future, the Surface and Outlook releases are pretty good, and their releases of their bread-and-butter products (Windows, Office, etc) continue to be decent. It remains to be seen how much they're going to interfere with Nokia D&S post deal.