A Little Intrigue Behind the Microsoft-Nokia Deal

[Brad Wasson]

<div class='os_post_top_link'><a href='http://www.computerworld.com/s/article/9209259/Microsoft_to_pay_out_billions_as_part_of_Nokia_deal' target='_blank'>http://www.computerworld.com/s/arti...t_of_Nokia_deal</a><br /><br /></div><p><em>"Nokia on Sunday hinted that Microsoft essentially won a bidding war against Google to supply software to the world's largest handset maker and that the software giant agreed to pay "billions" of dollars for the privilege."</em></p><p><img src="http://images.thoughtsmedia.com//wpt/auto/1297739476.usr110171.png" style="border: 1px solid #d2d2bb;" /></p><p>It seems like Microsoft and Nokia's Windows Phone deal was based on more than just a technology coordination effort. Much more. Computerworld has written an article that suggests new Nokia CEO Stephen Elop admitted as much on the eve of the Mobile World Congress which started today. According to Computerworld:</p><p><em>"He referred to a slide that Nokia displayed last week that showed marketing resources and other investments flowing from Microsoft to Nokia as part of the deal. While speculation has had that number in the millions or tens of millions of dollars, the figure is actually much higher than that, he said. "In fact the value transferred to Nokia is measured in B's not M's," he said."</em></p><p>The more we learn about the deal the less of a surprise it is, I suppose. For one thing, Microsoft has some very deep pockets that would allow an investment of this size to jumpstart the development of an ecosystem around Windows Phone 7. What is intriguing, though, is the idea that Google was considering coming to the table as well, and that Nokia preferred the idea of a larger multi-player marketplace, rather than an Apple-Android duopoly.</p><p>It seems to me there must be still more to this story. Wouldn't Nokia have benefited from a cosy-relationship and position with Google? Did Nokia think the Windows Phone 7 story was so compelling that it swayed it over to the Microsoft side? Seems hard to imagine. We can only speculate at this point and wait for more of the story to unfold. What do you think is going on here? Did Nokia simply respond to the highest bidder, or is there something more to this related to the Microsoft lineage of CEO Elop?</p>

[Chris Hordley]

Personally, I think people are underestimating the android platform. The main stream media are lauding Apple and ignoring the opposition. Nokia and Microsoft seem blinded by the fact that the "iproducts" are highly successful at the moment i.e. in the affluent, "old" world. But the up and coming markets such as the strident youth of Eygpt and Iran and the emerging, tech hungry rest of humanity will not be able to afford the prices. Android puts technology into poor but very savvy hands. I fear Nokia and Microsoft are old hat and as a wearer of an old hat I am not gloating, I loved my Nokia phones (we even still have a Nokia TV !) and Windows 7.

[Fritzly]

More than the Microsoft lineage of CEO Elop is the amount of the shares of MS and Nokia that he holds and will hold in the future.
Nothing has been said about..... yet but as soon as some Nokia shareholder will start asking about it will be interesting to see what will emerge.....

[virain]

I doubt, that Nokisoft underestimate Google, in fact, there was an article on engadget where they quoted Nokia executive saying that the main purpose of this partnership is to fight Google. Google, and not the Apple. As far as Nokia's choice of WP 7 over Android, This Scandinavian company always march to it's own drum. WP7 is a new, attractive, and promising platform with strong muscle behind it. If MS keep it's word and put all the updates in time, Nokisoft phone will easy compete with Google, as Many young current Nokia fans will discover WP7 and create the buzz. On the other hand MS will get " own" hardware capable compete in style and performance with trend setting iPhone. It seems to me, that current MS partnerships don't work very well for MS, as many OEMs keep putting out Android devices one after another, while ignoring WP 7 ( expensive, not customizable). Google has its Nexus, MS will get its Nokisoft Phone as a benchmark for what WP7 hardware should be.

[Nelson Ocampo]

More than the Microsoft lineage of CEO Elop is the amount of the shares of MS and Nokia that he holds and will hold in the future.
Nothing has been said about..... yet but as soon as some Nokia shareholder will start asking about it will be interesting to see what will emerge.....

Actually, Elop did address this during his Q&A session at Mobile World Congress.

Yes, Elop does own shared in MS. He was selling them and had to stop selling once Nokia and MS entered talks because it would be illegal to continue selling when he has insider information. He will continue selling his MS shares as soon as it is legal for him to do so again.

[Fritzly]

Actually, Elop did address this during his Q&A session at Mobile World Congress.

Yes, Elop does own shared in MS. He was selling them and had to stop selling once Nokia and MS entered talks because it would be illegal to continue selling when he has insider information. He will continue selling his MS shares as soon as it is legal for him to do so again.

No, he did not: he did not disclose how many shares he has, how many he has already sold, how many options he holds and when he can exercise them; also he declined to mention how many shares and options of Nokia he will receive.

[Nelson Ocampo]

No, he did not: he did not disclose how many shares he has, how many he has already sold, how many options he holds and when he can exercise them; also he declined to mention how many shares and options of Nokia he will receive.

He did address it. But apparently, not to your satisfaction.

What is the relevancy of all the details that you want?

What are your specific accusations?

[Fritzly]

He did address it. But apparently, not to your satisfaction.

What is the relevancy of all the details that you want?

What are your specific accusations?

For your information the details I mentioned are the standard ones that are disclosed in these kind of situations.

[Nelson Ocampo]

For your information the details I mentioned are the standard ones that are disclosed in these kind of situations.

What standard is this? And to whom is disclosure to in standard practice?

Are you speaking about a governing body? An organization?

And are these mandated standards? If so, who mandates them? If not, then are they truly standards?

I'm not seeing much specificity in your posting. And it looks like you want to bring up an interesting, but controversial discussion. But before one could take place, the full accusation must be presented along with proper context.