Microsoft shares drop on $7.2 billion Nokia phone deal

“Microsoft is wagering $7.2 billion on the idea that owning Nokia’s phone business will help the software giant grab a bigger slice of the mobile computing market from Apple and Google,” Matti Huuhtanen reports for The Associated Press. “Some analysts questioned whether buying up the mobile business of Nokia, the fading star of the cellphone world, would aid Microsoft. ‘Until there are signs that (Microsoft) can innovate and successfully execute in the post-PC era, we expect the stock to languish at current levels,’ said Janney analysts Yun Kim and Alice Hur. ‘We do not believe the planned acquisition of (Nokia’s) mobile business changes (Microsoft’s) strategic positioning in the smartphone market.'”

Huuhtanen reports, “Microsoft’s shares fell $2.05, or 6.1 percent, to $31.35 in midday trading in the U.S.”

“Microsoft, based in Redmond, Wash., has been racing to catch up with customers who are increasingly pursuing their digital lives on smartphones and tablet computers rather than traditional PCs. The shift is weakening Microsoft, which has dominated the PC software market for the past 30 years, and empowering Apple Inc., the maker of the trend-setting iPhone and iPad,” Huuhtanen reports. “The acquisition is being made at the same time that Microsoft is looking for a new leader. Just 10 days ago, Ballmer, 57, announced he will step down as CEO within the next year. Stephen Elop, who left Microsoft in 2010 to become Nokia CEO, will step down as president and CEO of the company to become executive vice president of Nokia devices and services and will rejoin Microsoft once the acquisition closes. The deal has fueled speculation that Elop, a former Microsoft executive, will emerge as a top candidate to succeed Ballmer.”

Read more in the full article here.

MacDailyNews Take: Please, let them make Elop CEO… please, let them make Elop CEO… please, let them make Elop CEO…

16 Comments

  1. A while back I speculated that Microsoft was now structrually incapable of producing anything of quality. If their board picks Elop, there will have demonstrated just how far from reality things have gotten for them. Gad, that would provide fodder for MDN takes for years to come. Funier than Mikey, funnier than Balmer T Clown… I mean, how ridiculous could things get?

  2. Awesome! It’s deja vu all over again! In ’08 MS bought smart phone maker Danger. The end result was the wildly popular Kin!

    Ooooo…this is gonna be fun! Where’s my popcorn?!

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