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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

#11
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...

Don't forget that Microsoft('s lackey) took care of lowering their value as much as possible before buying the Devices and Services unit for some spare change.

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

#12
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.

Right, that makes sense! And the Alcatel that Nokia is buying here, is much more than a producer of phones.

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

#14
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 bought Nokia's handset division (roughly half the company) and the right to use the Nokia name for a limited time. They didn't buy the whole company.

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

#15
post #11
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...

Don't forget that Microsoft('s lackey) took care of lowering their value as much as possible before buying the Devices and Services unit for some spare change.

Come on. Nokia was doing a fine job of lowering the value of their handset business on their own.

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

#16
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...

Nokias handsets was a failing business, or at least seen as such, building networks is a growing business. There are still large parts of the world that does not yet have a mobile phone network, or where networks are still being upgrade.

The "new" Nokia is Nokia Networks (http://networks.nokia.com/), so it's the company that supplies the ISPs with their infrastructure.

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

#17
post #10

Earlier quoted context omitted.

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.

Indication, but not guarantee. The point I was really trying to make, is that rumors typically don't leak at the very early stage, when there are limited people involved. The point at which rumors do start occurring, is at the very final, final stages - and so it's not surprising that a deal is closed soon after the rumors start leaking.

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

#18
Essentially this means that Nokia won't get back into consumer hardware for a good while. The mapping division (Here) will probably be sold soon.

The mobile networks business is now the primary driver at the company. They'll have their hands full trying to integrate the Alcatel-Lucent networks business with their existing assets. (Remember that Nokia's networks business today is already the result of a merger with Siemens and a purchase of Motorola's networks division, so they have some experience with that.)

Nokia is now a formidable competitor to Ericsson and Huawei, but it won't be on Samsung's or Apple's radar again.

I know that Nokia does license the Nokia brand to Foxconn for Android tablets sold in the Chinese market... But that's not a sign of life in Nokia's consumer ambitions any more than it is for other brand licensors like Kodak or Polaroid.

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

#20
post #10

Earlier quoted context omitted.

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.

Apple rumors are not a typical example. There's a whole industry of idiots "analysts" who do nothing but release click-bait speculation about Apple.
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