Microsoft Nokia Acquisition Details

M&A (Refresher)
Microsoft - Nokia Deal

SML -829 ; Mergers & Acquistion Course
DMS , IIT Delhi
Group no-1 Pawandeep Singh Maniktala | Mayank Lau

Nokia CEO Stephen Elop (left) and Microsoft CEO Steve Balmer shake hands at the announcement of Microsoft’s Acquisition of Nokia for
$7.2 billion

M&A - Microsoft - Nokia Deal
Industry View :
● Nokia was one of many cell phone manufacturers that struggled
● Apple‘s iOS and Google ‘s Android gained dominance of the smartphone market and displaced cellphones and other smartphones. M&A - Microsoft - Nokia Deal
What does it mean for Microsoft?
1. How Soft Co. planned to generate profits from cellphone maker that was bleeding money
2. Nokia’s bleeding money costs Microsoft 8 cents from EPS earnings per share first quarter
3. Microsoft expects Nokia to break even by 2016.
Action Plan :
4. Devices would focus on high and low cost Windows smartphones
5. 2 BU smart devices /mobile phones would become one, cutting overlap and overhead. 6. To Reduce engineering in Beijing & San Diego and unwind engineering in
Oulu, Finland.
7. To Shift manufacturing to lower cost areas like Manaus, Brazil and Reynosa,
Mexico; and reduce manufacturing in Beijing and Dongguan, China.

M&A - Microsoft - Nokia Deal
● Microsoft acquires Nokia’s phone Business
● Microsoft acquired Nokia’s Qualcomm, other Key IP licenses
● Microsoft licenses Nokia’s patents for use across all Microsoft products
● Nokia retains NSN , HERE , its CTO office and its patent portfolio

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

M&A - Microsoft - Nokia Deal

Thank You

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