Saturday, June 25, 2016

Microsoft bought Nokia's $ 7.17 billion


     Microsoft has just announced the purchase of Nokia, where these purchases will only take the hardware division and services division along with his patents which incidentally is the core product of Nokia. This makes Nokia, leaving only three divisions, namely NSN (network infrastructure), HERE (mapping), and Advanced Technologies.
     As part of the transaction, Nokia's current CEO Stephen Elop will resign and joined Microsoft, where there is the possibility Stephen Elop is being groomed to replace Steve Balmer who will step down from the CEO of Microsoft. In addition to displacement CEO, as many as 32,000 thousand employees will move from Nokia to Microsoft, including 18,300 manufacturing employees.
     Nokia price to be paid Microsoft for US $ 7 Billion sounds very large, but in fact the price is very cheap considering 5 years ago (september 2008) Nokia's market cap of more than US $ 75 billion. Moreover, Nokia bought much cheaper than when Microsoft bought Skype, which reached US $ 8.5 billion.
     Purchase Nokia likely intended to strengthen the ammunition Microsoft's Windows Phone 8 so as to challenge the mobile giants like Apple (iOS), Google + Motorola (Android) and Samsung.