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Nokia (NOK) +2.6% AH after the WSJ reports Microsoft (MSFT) held advanced talks to buy Nokia's...

Nokia (NOK) +2.6% AH after the WSJ reports Microsoft (MSFT) held advanced talks to buy Nokia's phone business, and was "close to an oral agreement" at one point, but adds discussions broke down in part due to price and concerns about Nokia's competitive positioning. One source says the talks "took place as recently as this month, but aren't likely to be revived."
Comments (51)
  • JoseV
    , contributor
    Comments (404) | Send Message
     
    Even if this turns out to be a false start, it might someday come about and even that suggestion demonstrates that Nokia will succeed one way or another. Go Nokia
    19 Jun 2013, 04:28 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8661) | Send Message
     
    I remember the days when Nokia longs laughed at the idea of Nokia selling its phone division and talked about the imminent gains in market share that were "just around the corner' with the upcoming "Lumia" line of phones.

     

    What happened?
    20 Jun 2013, 08:31 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (8841) | Send Message
     
    Nothing.
    20 Jun 2013, 08:38 AM Reply Like
  • tomybhoy
    , contributor
    Comments (126) | Send Message
     
    Have they not gained market share recently?
    Have they sold their phone division?

     

    So, what are you saying happened?
    20 Jun 2013, 08:39 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (8841) | Send Message
     
    Nothing happened. No Huawei bid. No Microsoft bid. Just a lot of hot summer air blowing down Wall Street.

     

    Trevlig Midsommar!
    20 Jun 2013, 08:41 AM Reply Like
  • Leont68
    , contributor
    Comments (1365) | Send Message
     
    I remember the days where DVL said Nokia would go bankrupt, what happened?
    20 Jun 2013, 08:48 AM Reply Like
  • tomybhoy
    , contributor
    Comments (126) | Send Message
     
    No bankruptsy, Windows Phone gaining traction with the 520 doing particularly well, NSN getting their act together, higher lows in stock price, Microsoft put in a position where they may have to but Nokia if another comes in with a concrete bid.

     

    All bad news obviously :)
    20 Jun 2013, 08:53 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    It would perhaps be likely if they separated the Lumia and Asha lines; Asha is of no interest to MS, as it has its own OS (and a very good one, it seems!) but if it could buy just the Lumia division, then watch out!
    21 Jun 2013, 09:46 AM Reply Like
  • WealthManager
    , contributor
    Comments (157) | Send Message
     
    Yesterday Huawei, today MSFT and tomorrow???
    19 Jun 2013, 04:29 PM Reply Like
  • JoseV
    , contributor
    Comments (404) | Send Message
     
    Tomorrow, NOK, 0ver $4!
    19 Jun 2013, 04:31 PM Reply Like
  • WealthManager
    , contributor
    Comments (157) | Send Message
     
    I am fine with that !
    Ultra long NOK
    19 Jun 2013, 04:35 PM Reply Like
  • stealthology
    , contributor
    Comments (312) | Send Message
     
    No there's a difference. The Financial Times is a POS source. WSJ is for the most part credible.
    19 Jun 2013, 05:07 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (8841) | Send Message
     
    Tomorrow?

     

    I think, on Gloomberg someone hinted at... Procter & Gamble?
    19 Jun 2013, 07:09 PM Reply Like
  • vireoman
    , contributor
    Comments (1007) | Send Message
     
    Are you sure about that? WSJ is owned by the "esteemed" Rupert Murdoch.
    19 Jun 2013, 08:45 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8251) | Send Message
     
    WEalth

     

    Tomorrow, 10 dollars a share!
    20 Jun 2013, 04:04 PM Reply Like
  • WealthManager
    , contributor
    Comments (157) | Send Message
     
    Dw.. all yours for $10. I ll buy back them for less than $4 next week
    20 Jun 2013, 04:33 PM Reply Like
  • JMstocks75
    , contributor
    Comments (250) | Send Message
     
    apple needs NOKIA more than anyone
    19 Jun 2013, 04:34 PM Reply Like
  • Leont68
    , contributor
    Comments (1365) | Send Message
     
    yeah! cover your behinds shorts
    19 Jun 2013, 04:45 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8251) | Send Message
     
    You do realize if MS bought Nok there would be virtually no value profit to be made, right?

     

    If any company trading at 20-40 dollars bought NOK, you'd have dead stock on your hand, save the bump in the company that buys NOK, but would probably prove a temporary bump.

     

    I mean our shares would get converted to the buying company's price and would act like a reverse split, right? (Our shares would be converted to the buying company's higher price stock, and we would get less shares.) Great--I just wasted my time with NOK. Well, I would sell for a good profit, but nothing like NOK going up on it's own past 5 dollars and more.
    19 Jun 2013, 04:45 PM Reply Like
  • JoseV
    , contributor
    Comments (404) | Send Message
     
    Hey no way, that Nokia would agree to be bought out. They have a poison pill to boot. Why be bought out when the competition is running for the hills. However a tightened partnership with MSFT would be the best thing that could happen to both companies, MSFT should immediately turn over the Surface business to Nokia as a starter to that partnership!
    19 Jun 2013, 04:52 PM Reply Like
  • GAlan
    , contributor
    Comments (271) | Send Message
     
    If a company were to buy NOK, they would offer a price payable in money and/or shares and at that point the shareholders can vote yes or no, or sell out on the runup
    19 Jun 2013, 04:54 PM Reply Like
  • Drew Easrtmond
    , contributor
    Comments (49) | Send Message
     
    Maybe we're all seeing this the wrong way. MSFT may have instead talked about pushing their surface into Nokia. I doubt any exclusivity but MSFT needs to step their game up in the tablet market and who better to offer a premium tablet at a competitive price world wide...

     

    hmmmmmmm!
    19 Jun 2013, 05:26 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8251) | Send Message
     
    Jose
    GA
    Drew

     

    All correct, but what I'm saying is that NOK has more upside potential for us traders than getting bought out. It's a lazy trade but the potential is there. I mean we could work our rears off and not make the money we could simply holding NOK over the next 6 months, or year. NOK has small cap spec possibilities with large cap security. This type of thing just doesn't happen very often-same for AMD and BAC back when it was 6.00 a share when Buffet bought in.
    20 Jun 2013, 04:08 PM Reply Like
  • Gnart
    , contributor
    Comments (39) | Send Message
     
    If Apple buys Nokia then redeploys Nokia with iOS, Apple effectively destroys Windows phone. Nokia is the only significant Windows phone market driver.
    19 Jun 2013, 04:50 PM Reply Like
  • Abu Bakr Hussain
    , contributor
    Comments (596) | Send Message
     
    All I can say is "Wow".
    This is big, really big.
    There is so much going on here behind the scenes...
    19 Jun 2013, 04:51 PM Reply Like
  • JoseV
    , contributor
    Comments (404) | Send Message
     
    ABH, Note the AH volumes, you can bet we havent heard all yet. But still think that the NOK-MSFT is the winning cobination in the Mobile business..
    19 Jun 2013, 05:00 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    Jo, make that MS+Lumia division, and I'd agree; it'd be so much easier to agree a price if the Asha line was no longer an integral part. This would work for Nokia too, as the Asha, to my mind, is likely to be the most profitable in the long run...
    21 Jun 2013, 09:51 AM Reply Like
  • Charles Santerre
    , contributor
    Comments (1242) | Send Message
     
    @ gwynfryn: not sure about your Asha theory. It is the gateway to emerging markets, and if MSFT acquired NOK they would not want to lose that, eventually bringing Windows phones to Asha price levels, as hardware gets older and price drops. Example: One year from now you could have Asha be the equivalent specs of the WP7 phones.
    21 Jun 2013, 10:02 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    Charles, I'm not sure myself, but it does have the advantage of simplifying the present options. If as you state, the plan is to bring Windows phones to Asha price levels, then they won't be doing it on the Asha line. Also, the Asha OS appears to be capable of becoming a full smart phone driver, so there's already a level of redundancy here! Lastly, do the people currently running Nokia want to become a subdivision of MS? Nokia has a developed culture of its own, and I don't think they'd want that. Nokia running with Asha, developing the OS so it covers the whole range, lets them keep their identity, whilst giving MS the phone they need, and with which they can better integrate their software, once they have complete control of both.

     

    As an all round solution, it has much to commend it!
    21 Jun 2013, 10:11 AM Reply Like
  • sterlman1
    , contributor
    Comments (7) | Send Message
     
    Can we get a bidding war here?
    19 Jun 2013, 05:04 PM Reply Like
  • La Rue
    , contributor
    Comments (757) | Send Message
     
    I'll second that.
    19 Jun 2013, 05:06 PM Reply Like
  • R.A.L.M
    , contributor
    Comments (26) | Send Message
     
    this sounds like a movie without a director, long nokia but not in this way.
    19 Jun 2013, 05:04 PM Reply Like
  • heatnup
    , contributor
    Comments (65) | Send Message
     
    This report confirms speculation of talks going on for over a year now. Microsoft is interested! I just didn't think it would happen for another quarter or two until Microsoft seen the traction of the Nokia phones.

     

    But with that traction, Nokia may be too valuable after this next quarters earnings for MSFT to afford them. Either way, I am certain we have not heard the end of this and someone will try to pick up Nokia before its gets back over $10 USD per share.
    19 Jun 2013, 05:04 PM Reply Like
  • Delphinus
    , contributor
    Comments (136) | Send Message
     
    Nokia will not sell itself cheaply. Did you notice that Nokia is recapturing its No. 1 position on its home market, the tech savvy Finland: http://bit.ly/14cUDxY Bravo! That's Finnish sisu. Psychologically important. The start of a worldwide victory journey?
    19 Jun 2013, 05:09 PM Reply Like
  • Genesis Housing
    , contributor
    Comments (423) | Send Message
     
    Interesting on Finland. Any idea what that figure for WP was previously..ie. how much of a catch up have we seen. Would imagine Finalnd as home market has decent bias towards Nok
    19 Jun 2013, 10:30 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (1971) | Send Message
     
    @genesis It is a mixed bag, a lot of strong feelings both ways.

     

    See my earlier comment here:
    http://seekingalpha.co...
    20 Jun 2013, 09:18 AM Reply Like
  • mr wonder
    , contributor
    Comments (546) | Send Message
     
    Nice, but most of us knew that Nokia is extremely undervalued :)

     

    For the rest, I think Nokia should not let themselves get distracted and stay focused on their long term goals, 10% market share in 2014, being at the top next to Apple, Ericsson and Google maps.
    19 Jun 2013, 05:11 PM Reply Like
  • youngdividend
    , contributor
    Comments (55) | Send Message
     
    Don't do it, cuz if u did it, you've done it
    19 Jun 2013, 05:36 PM Reply Like
  • tomybhoy
    , contributor
    Comments (126) | Send Message
     
    Would posters think the fact it was stated that talks would not be reactivated was a negative for Nokia share price?
    Nokia needs to slim down some more before they can hope to reward shareholders from 10 years ago....selling now wont reward the people who suffered the greatest loss.
    19 Jun 2013, 07:00 PM Reply Like
  • Leont68
    , contributor
    Comments (1365) | Send Message
     
    Those stockholders most likely have either averaged down or sold at a loss and taken a tax deduction.

     

    Stock market is full of potholes, all we can do is try to steer clear of them.
    19 Jun 2013, 07:11 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (9284) | Send Message
     
    I think the announcement yesterday that huawei was interested was no accident a day before Microsoft intentions get leaked.

     

    Could it be that huawei is trying to drive the price up by showing interest so that Microsoft can't get it's hands on it?
    19 Jun 2013, 07:41 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8251) | Send Message
     
    Mr

     

    No, MS is telling WaaWee to back off or it will step in and bid the price so high WaaWee will squeel and MS will have bought NOK. WaaWee does not want MS to have NOK. It's just corporate saber rattling.
    20 Jun 2013, 04:12 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (9284) | Send Message
     
    thanks dwd, seems reasonable.
    20 Jun 2013, 05:52 PM Reply Like
  • Genesis Housing
    , contributor
    Comments (423) | Send Message
     
    I actually think at this valuation, you are getting the Device business for free. Have written it up in article which submitted. The valuations for NSN being bounded about in the press all came from a CS note done by analyst team who are bearish on Nokia and arent the best stock pickers have ever come across. I think the comparison with ericsson is more interesting. also if anyone can figure a value for HERE could help a sotp type argument. Either way there bid talks are going to focus funds on Nokia again as for most it is ignored and left for dead. It will be the comeback kid!
    19 Jun 2013, 10:33 PM Reply Like
  • Delphinus
    , contributor
    Comments (136) | Send Message
     
    @Genesis Housing
    According to an earlier Seeking Alfa article,
    http://seekingalpha.co... , Samsung in Q1 controlled 36.1% of the Finnish smartphone market compared to 33.6% for Nokia
    19 Jun 2013, 11:45 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1530) | Send Message
     
    Dead stock, NOK is. The market price tells you that; look at the five year chart, this stock is circling the drain. Yes I'm long NOK.
    20 Jun 2013, 01:13 AM Reply Like
  • DownTwist
    , contributor
    Comments (90) | Send Message
     
    I'm convinced that if Nokia sells its phone business it will use the cash to buy 100% of NSN. Elop really wants NSN, that's why I think it's plausible the mobile business will be sold.
    20 Jun 2013, 02:31 AM Reply Like
  • yonipl
    , contributor
    Comments (9) | Send Message
     
    Part "discussions broke down in part due to price and concerns about Nokia's competitive positioning" does not sound convincing.

     

    Nokia is not that expensive even with massive premium, and secondly MS has lot of cash.

     

    "Competitive position", really? I mean what that means?
    - Is it a drawback to MS that Nokia uses Windows Phone as its OS? (Do they really want to invest into an Android manufacturer to be more "competitive"?).
    If MS wants to shine in phone business, it is trough WP and whether that OS succeeds or not, and if we look which manufacturer is selling WP phones and is gaining market share for WP, that is Nokia.

     

    So, in my view, Nokia is for MS the horse to bet, and it is actually the only horse. They should invest in nokia (be that marketing or acquisition) anyway if MS wants to gain more market share and more rapidly.

     

    So, I really do not understand either reason, "price" or "competitive positioning".

     

    Moreover, Nokia should be better off by staying as it is, as individual company. At least for shareholders in long term...
    20 Jun 2013, 03:14 AM Reply Like
  • alpine
    , contributor
    Comments (1107) | Send Message
     
    Re: "Nokia is not that expensive even with massive premium, and secondly MS has lot of cash."

     

    Just as in Skype acquisition, Microsoft will have to do something about its non-US cash, as it is better to apply the cash to an eventual annuity stream like business ex-Nokia than bring it back to US at penal tax rates.

     

    Also, how happy Mr. Olli Rehn, the current Finnish-born EU Commisioner for Economic and Monetary Affairs will be that a dying Finnish company is finally going into the relatively safe hands of a US behemoth.

     

    For Microsoft, with so many of its technological offerings in place, it is time to spend its financial prowess on gaining market (and mind) share, revenue, esp from non-US markets, when the entire smartphone industry is in a state of flux. We cannot underestimate Nokia's traditional market presence in the smallest of villages, towns all over the emerging markets, in the smallest 'hole in the wall' mobile phone shops everywhere. Microsoft can never reach these markets (as Apple is finding out to its chagrin), but it can with Nokia's help.
    20 Jun 2013, 05:30 AM Reply Like
  • yonipl
    , contributor
    Comments (9) | Send Message
     
    Breaking news!

     

    According to the Finnish Broadcasting Company YLE Nokia's Board of Directors has been meeting yesterday, Wednesday, and there is another meeting scheduled for today, and/or at least some members are standby even today!

     

    Link:
    http://bit.ly/12XL4qZ
    20 Jun 2013, 11:37 AM Reply Like
  • Doug Dallam
    , contributor
    Comments (8251) | Send Message
     
    Does anyone know what the H is going on with the board meetings?
    20 Jun 2013, 04:14 PM Reply Like
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