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Nokia Agrees to Buy Alcatel-Lucent for $16.6B

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Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#5
I don't really understand how this works. Microsoft bought Nokia for about $7B[1] and now Nokia pays more than twice that amount for Alcatel? Where is this money coming from and why is Alcatel worth so much more?

[1] http://www.businessinsider.com/microsoft-closes-nokia-acquis...

Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#6
post #3

Sounds like Nokia is looking for a way to prepare itself to enter the market with new products. Good news for Europeans for sure, since Nokia was the company that usually managed to translate products to European realities.

Or that they're looking to get into the patent trolling business.

Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#7
post #3

Sounds like Nokia is looking for a way to prepare itself to enter the market with new products. Good news for Europeans for sure, since Nokia was the company that usually managed to translate products to European realities.

I don't think this has any positive implications for a potential new Nokia handset business. It is, however, possibly bad news for Ericsson and Huawei.

Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#8
post #5

I don't really understand how this works. Microsoft bought Nokia for about $7B[1] and now Nokia pays more than twice that amount for Alcatel? Where is this money coming from and why is Alcatel worth so much more? [1] http://www.businessinsider.com/microsoft-closes-nokia-acquis...

Microsoft only bought the handset business from Nokia, they didn't purchase all of Nokia. In fact, as I recall, they only got the right to use some of the brand names for a limited period of time.

Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#9
post #2

That was quick... there there rumors just last week...

Rumors typically only become public as the deal is closing, and more people are brought in to do the work on it. The fact that there were rumors was a strong indication that the deal was about to take place.

Re: Nokia Agrees to Buy Alcatel-Lucent for $16.6B

#10
post #2

That was quick... there there rumors just last week...

Rumors typically only become public as the deal is closing, and more people are brought in to do the work on it. The fact that there were rumors was a strong indication that the deal was about to take place.

Not quite, Apple was rumored to be buying Tesla, which would have made sense considering thier cash reserves, however the deal never happened.
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