The Finnish Mobile brands known as Nokia was one the market leader in the mobile segment and was the most trusted and used brand in India for 15 years. Since the introduction of Apple and Android the smartphone segment has moved very swiftly in the forward direction Nokia just got left behind and only recently they have realized they need to do something and made a deal with Microsoft for Selling Windows phone OS devices (Lumia series).
Nokia Once the most valuable firm in all of Europe has it’s prices fall to 2.20 euros which is the lowest they have dropped to in two decades.
The weekly Helsinki Times in its latest edition said the Nokia stocks were now below book value — a situation described as “worth more dead than alive” rhetorically. The investment community is fertile ground for rumours, and there are plenty about what could happen to Nokia. One of the most persistent rumours is that Microsoft may buy the company.
-Times Of India
“The alliance with Microsoft is a powerful one. Maybe Apple and Google have already won the mobile-phone business, and everyone else is doomed.”
– The Wall streetJournal.
“But that’s what they once said about Nokia. Things change in this industry. Microsoft, which is desperate to play catch-up in smart-phones, could buy Nokia today out of petty cash.” Bill Gates founded software company Microsoft has 46Billion Euros in Cash Equivalents while Nokia is only worth 8Billion Euros.
Samsung is Also rumored to be interested in buying Nokia and the if the rumors are to be believed the price quoted for acquisition is 15Billion Euros.
So Why is Microsoft and Samsung Interested in Buying Nokia?
Patents. In the world governed Lawsuits Samsung and Microsoft want exclusive rights to the number of patents owned by Nokia. That is why Google bought Motorola, for the patents it owned to protect Android from patent infringement lawsuits.
Microsoft seems more likely to acquire Nokia to boost their plan of an integrated ecosystem where they plan to connect the computers, tablets, mobiles and consoles with their upcoming Windows 8 operating system.