The Annual Summertime Ritual Noise: Dow Jones' WSJ ...
... supposedly according to "people familiar with the matter." (aka sources say).
>> Microsoft Talked With Nokia About Buying Device Business
Sharon Terlep, Dennis K. Berman, and Shira Ovide
Dow Jones Business News
The Wall Street Journal
June 19, 2013
nasdaq.com
Microsoft Corp. ( MSFT ) was recently in advanced discussions with Nokia Corp. (NOK, NOK1V.HE) about a purchase of the Finnish company's device business, according to people familiar with the matter, in a marriage that could have reshaped the mobile-phone industry.
The talks have faltered, they said. One person said talks took place as recently as this month but aren't likely to be revived.
The two sides made significant progress on a plan that would stitch the U.S. software giant with a mobile-phone pioneer. Both companies have struggled of late, as each has tried to adapt to a world in which consumers prefer smartphones built by Apple Inc. and Samsung Electronics Co. .
"We have a deep partnership with Microsoft and it is not uncommon for Nokia and Microsoft to meet on a regular basis," a Nokia spokeswoman said. A Microsoft spokeswoman declined to comment.
Redmond, Wash.-based Microsoft eventually walked away from the deal in part because of the price and Nokia's own strategic predicament--in which it ranks as a trailing player to Apple and Samsung. A host of upstart Asian companies are now also gaining market share in the business of making smartphones and other mobile gadgets.
Nokia's shares are trading around $3.84, up about 50% over the last year but sharply down from historic highs, a price that gives the company a market capitalization of about $14 billion.
A plus factor in the negotiations was the possibility of Microsoft using offshore cash to fund a deal. The company has about $66 billion of cash held in offshore subsidiaries--a stockpile that would be tough to bring back to the U.S. without incurring a large tax bill.
The two sides held their discussions in London and were close to an oral agreement about a combination, one of the people said.
More than two years ago, the companies struck a partnership for Nokia to use Microsoft software exclusively to power Nokia smartphones. The partnership so far has failed to significantly lift the companies' mobile fortunes.
While Microsoft's smartphone software, Windows Phone, has leapfrogged BlackBerry as the third-biggest smartphone system in the world, sales continue to struggle amid competition from phones powered by Google Inc.'s (GOOG) Android software.
Research firm IDC said Windows Phone represented 3.2% of smartphones shipped worldwide in the first quarter of this year, while about 75% of new smartphones were powered by Android software, used by Samsung, Motorola and other handset makers. ###
- Eric - |
