Microsoft to buy Nokia?

Rumors are doing round that Microsoft may acquire struggling mobile maker Nokia.
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Investment market is abuzz with rumors that the software juggernaut Microsoft may buyout Nokia. The Finnish mobile maker has lately been struggling to keep up with the pace of mobile phone revolution. With the rise of Apple, Google and Samsung in smartphone market, Nokia has drastically lost its market share. Nokia, once upon a time, was the top most mobile manufacturer in the world and most valuable company in Europe.

With no other company seems to be interested in Nokia and Microsoft being on the lookout of for ways to better its position in the mobile market, it will not be surprising if we see Microsoft acquiring Nokia. Microsoft has over 46 billion Euros in cash while the current market value of Nokia stands at less than 10 billion Euros. Nokia shares are trading at an all time low –and below book value.

Apple, Google and Samsung; the bigwigs of the mobile/operating system market, are already well placed in market. It is only Microsoft that is lagging behind. So, Microsoft would want to take over Nokia and combine its expertise in making smart phones with upcoming Microsoft Windows 8 operating system. Such a move may strengthen Microsoft’s dwindling position in mobile market.

It is interesting to note that Stephen Elop, the current CEO of Nokia, was working with Microsoft before becoming the first non-Finn CEO of Nokia. Elop joined Nokia in September 2010 and within less than a couple of years –rumors are that Microsoft may buyout Nokia!

In February 2011, Elop decided to move away from Nokia’s flagship Symbian mobile phone operating system. He gave preference to Microsoft’s Windows Phone 7.

Comments

  1. Anurag says

    lalit i would be very thankful to you if your next article will be on “top technology and computer blogs and websites worth following”.

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