In the wake of its latest warning and restructuring plan, Nokia (NOK -17.6%) says it's willing...


In the wake of its latest warning and restructuring plan, Nokia (NOK -17.6%) says it's willing to sell part of its patent portfolio to help raise cash. The portfolio, which has allowed Nokia to collect royalties from Apple, contains 30K patents, including a number of innovations critical to 3G/4G networks and smartphone user interfaces. Also: Nokia says it's acquiring Scalado, a Swedish developer of imaging technologies that are used in over 1B devices. (more on NOK)

From other sites
Comments (10)
  • sreimer77
    , contributor
    Comments (242) | Send Message
     
    Let's see, the Royalty being collected from Apple has been quoted at 600million a year. $600mil/4% discount rate = present value of $15Bil, a 3% discount rate it is $20Bil, at 2% discount rate it is $30Bill and 1% discount $60 Bill.

     

    So no matter what rate is used, just the patents relating to royalties being collected from Apple are worth at least $10Billion...
    14 Jun 2012, 11:40 AM Reply Like
  • techy46
    , contributor
    Comments (11500) | Send Message
     
    "We will sell patents at the right price," Mr. Ihamuotila said during a conference call following the company's second-quarter profit warning and restructuring announcement.

     

    That doesn't mean all the patents and that means the "right price". So I still think Microsoft is the one that has to act in some manner but right now Microsoft doesn't really need to hurry.
    14 Jun 2012, 06:02 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    If Nokia could just drop by another 40% then I can jump in to catch that patent sales wave.
    14 Jun 2012, 12:55 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    To: MSFT

     

    BUY NOKIA BEFORE ITS TOO LATE.

     

    A failure at NOK will sink WP7/8 prospects indefinitely. If you lay with dogs...clean up the mess. This is like a rescue ship responding to the Titanic only to hit the same iceberg and sink along side it.
    14 Jun 2012, 01:01 PM Reply Like
  • pureview8
    , contributor
    Comments (226) | Send Message
     
    Agreed.

     

    MSFT needs to acquire Nokia or take a big equity stake by next week to inject confidence back into Nokia. They cannot wait until the WP8 launch to see how it goes. By then customers will have written off Nokia completely. No one will want to sign a 2-yr contract to buy a phone from a company whose share price is less than their monthly text plan.

     

    MSFT may be on the verge of a huge blunder here -- and risks becoming another Nokia-- if they don't save the real Nokia.
    14 Jun 2012, 06:56 PM Reply Like
  • etaster
    , contributor
    Comments (42) | Send Message
     
    I'd love to know how their Board justified paying a dividend. Are their no negligence laws in Finland ?
    14 Jun 2012, 03:59 PM Reply Like
  • sreimer77
    , contributor
    Comments (242) | Send Message
     
    Why not take the Billion provided from MSFT and buy back shares! Its actually quite sad, when you look at the balance sheet and financial data, and realize these companies have the ability to support share price. Nokia, cash and receivables, minus short-term liabilities is a net 5.5Billion. If we add inventories that brings us to a net of about 8.5 billion. So property, plants and patents are pretty much being valued at zero. If they just took the Billion and bought back shares with, A:) it would cause a short squeeze and B:) would bring there share price back above $5 allowing for more institutional support.

     

    I hate all of these class action law suits, but between NOK and RIMM, I almost want to fly to their Corp HQ and ask what the Fxxxx are you doing. RIMM has a net cash position of 3.6Billion. Since they have no long-term debt, positive cash flow even following their losses, why don't they just buy back half the damn company. This would still leave them with 1.1 Billion in cash. They could even borrow $ and milk that annuity income from services. It's time to demonstrate that these companies have the confidence in themselves and the only way to do that at this point, is show me the $$$$. Invest in yourself not in R&D, but through equities......
    14 Jun 2012, 04:36 PM Reply Like
  • sreimer77
    , contributor
    Comments (242) | Send Message
     
    In all seriousness, both RIMM and Nokia can finance themselves and go private at todays valuations. Why sell yourselves, the market is manipulated, it has determined RIMM is dead, so why would you want to participate in the equities market when you are so hated.

     

    The integrity of Capital Markets is being destroyed. No wonder why Generation X and Y, have all of their savings in cash. The % of individuals in these generations investing is lower then that of the Great Depression. Why? Its not because companies are not earning profits, distributing dividends, or are over-valued, its because they have lost faith in the markets! With that faith, goes the integrity of the markets.. Facebook's IPO was the tipping point... When the markets fail, so does society, so we all better start arming ourselves!
    14 Jun 2012, 04:41 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
     
    Have my eye on a sig sauer ar...and looking into those zombie killing bullets from a company in the south. Yes, they make them :)
    14 Jun 2012, 05:16 PM Reply Like
  • FinFreedom
    , contributor
    Comments (21) | Send Message
     
    The fact that Nokia is buying Scalado should make people to think twice about the future of the company.
    Why are buying if the company is doomed?
    What will MS do? If Nokia goes down Win8 will too. The future of Win8 for mobile devices depends on Nokia's survival. ;)
    Just my thought.
    14 Jun 2012, 11:04 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs