Microsoft Decides Against Nokia Buyout [ZT]# Stock
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Tech giant Microsoft Corporation (NASDAQ:MSFT) recently considered acquiring
Nokia but decided against it. It was reported that Nokia allowed Microsoft
to take a look inside their books and that’s when the company decided not
to buy them after all.
This is a very smart move on Microsoft’s behalf. Nokia Corporation (NYSE:
NOK) is failing fast as their sales have plummeted significantly in the last
few years. Just over the last five years, Nokia’s share sales decreased by
ninety percent to just $2.91 a share. If Microsoft decided to purchase the
poorly performing mobile company, it wouldn’t cost them that much to
purchase the company for little but making such a purchase would probably
reflect badly on the company and it could end up costing them in the long
run.
Andrew Orlowski from The Register elaborated the decision Microsoft made, “
But well-placed sources tell us that Microsoft was given access to Nokia’s
books late last year in an attempt to evaluate which parts, if any, were
worth acquiring. Not many people know this. The story is that having had a
gander, Microsoft walked away.”
He further mentioned that the only reason Microsoft considered acquiring
Nokia was to prevent a rival company from purchasing it.
Sometime last week there were rumors circulating that Samsung was
contemplating purchasing Nokia, and last winter it was rumored that both
companies were considering a joint effort to acquire Research In Motion
Limited (NASDAQ:RIMM.
As I stated earlier in this article, I think it was a wise decision on
Microsoft’s behalf to forgo the purchase of Nokia. As a large company that
has been failing in the mobile industry, I just don’t think it would be the
smartest decision to buy up another failing mobile company in hopes of
saving their own mobile business. Before they consider buying up another
mobile company(failing or not)I think Microsoft’s number one focus should
be perfecting their mobile business.
Nokia but decided against it. It was reported that Nokia allowed Microsoft
to take a look inside their books and that’s when the company decided not
to buy them after all.
This is a very smart move on Microsoft’s behalf. Nokia Corporation (NYSE:
NOK) is failing fast as their sales have plummeted significantly in the last
few years. Just over the last five years, Nokia’s share sales decreased by
ninety percent to just $2.91 a share. If Microsoft decided to purchase the
poorly performing mobile company, it wouldn’t cost them that much to
purchase the company for little but making such a purchase would probably
reflect badly on the company and it could end up costing them in the long
run.
Andrew Orlowski from The Register elaborated the decision Microsoft made, “
But well-placed sources tell us that Microsoft was given access to Nokia’s
books late last year in an attempt to evaluate which parts, if any, were
worth acquiring. Not many people know this. The story is that having had a
gander, Microsoft walked away.”
He further mentioned that the only reason Microsoft considered acquiring
Nokia was to prevent a rival company from purchasing it.
Sometime last week there were rumors circulating that Samsung was
contemplating purchasing Nokia, and last winter it was rumored that both
companies were considering a joint effort to acquire Research In Motion
Limited (NASDAQ:RIMM.
As I stated earlier in this article, I think it was a wise decision on
Microsoft’s behalf to forgo the purchase of Nokia. As a large company that
has been failing in the mobile industry, I just don’t think it would be the
smartest decision to buy up another failing mobile company in hopes of
saving their own mobile business. Before they consider buying up another
mobile company(failing or not)I think Microsoft’s number one focus should
be perfecting their mobile business.