This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Microsoft Spends $7.2B on Nokia Unit

NEW YORK ( The Deal) -- Software giant Microsoft (MSFT - Get Report) on Tuesday, Sept. 3, pushed ahead with a remake, buying the mobile phone activities of Nokia (NOK - Get Report) for €5.44 billion ($7.16 billion), ending an era at the iconic Finnish company and bringing a key executive back to Redmond, Wash.

Microsoft said it would pay ¿3.65 billion for Nokia's Devices & Services unit and an additional €1.65 billion to license related patents. Nokia CEO Stephen Elop will also follow the division to Microsoft, where he previously worked and where he's rumored to be a successor to outgoing CEO Steve Ballmer.

Nokia's shares exploded, gaining 37.3%, or €1.11, to €4.07 in early Helsinki trade.

The smartphone revolution, launched in 2007 with the introduction of Apple iPhone, is sparking dealmaking reminiscent of the original cellphone revolution at the end of the turn of the millennium. Just Monday, Verizon Communications agreed to buy out its partner in the Verizon Wireless venture, paying a staggering $130 billion for Vodafone's 45% holding.

"Deal activity is back on board this year in a sign of corporate confidence," wrote ETX Capital's Ishaq Siddiqi in a morning note.

Microsoft's Ballmer earlier this year said he would vacate the top post after investors complained he missed a key move to smartphones and tablets. The only major manufacturer to have embraced its mobile Windows operating platform was Nokia but 90% of that market now belongs to Apple's iOS and Google's Android.

The company is trying to follow Apple's lead and become a devices and services provider. Elop is seen as the key to that remake, though Nokia itself has made several missteps in smartphones -- some would include adopting Microsoft's operating system in its series of handset errors.

Over a decade ago, Nokia was the darling of cellphone owners, leading in sales and making a household name out of a 150-year-old Finnish company.

Following the sale, Nokia will be left with its business making cellular network gear and providing mapping services.

"For a lot of us Finns, including myself, Nokia phones are part of what we grew up with. Many first reactions to the deal will be emotional," wrote Alexander Stubb, the Finnish minister for European Affairs and Foreign Trade, on Twitter.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $50.16 0.00%
NOK $5.96 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs