Access over 20 million homework & study documents

Analysis Microsoft.

Content type
User Generated
Subject
Finance
Type
Homework
Rating
Showing Page:
1/10
Running head: MICROSOFT’S BUYOUT SEGMENT IN NOKIA 1
Financial Research Paper on Microsoft’s Buyout Segment in Nokia
Institutional affiliation
Student’s name
Course

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/10
MICROSOFT’S BUYOUT SEGMENT IN NOKIA 2
Introduction
In the year 2014 Microsoft completed buyout plan on Nokia’s device making segment for
a consideration amounting to $7.2 Billion. As reported by Steve Kovach on business insider
article analysis, the acquisition plan involved taking over phone and tablet business segments.
The acquired segment would then operate as a division under Microsoft division.
The acquisition deal had been announced in September of 2013 but it took a while to
finalize transactions in 2014 in adherence to set regulations. As at the acquisition date, Nokia’s
windows phones and the initial plan was to take over the world’s market in smartphone industry,
a move which favored Nokia at the time since other competitors such as Sumsung and HTC
could not match high-tech capacity in producing high-end androids. Only iPhone dominated the
market after entering in android segment in 2007.
The acquisition arrangement further included licensing of its patents and mapping
services to Microsoft. The employees of the company joined the acquirer, a move that saw
around 32,000 employees transfer working agreements to Microsoft. Although the company
boasted with technologically advanced research tools, the move to manufacture android phones
took too long to completion as the giant fell behind Apple. As such, due to public expectations,
the shares of Nokia shot up by 35% while those for Nokia fell by 5% in the week the buyout
clause was completed.
Reason why Microsoft Purchased Nokia’s Device Segment
Having has strong technological advancements in the years 2000’s, Nokia boasted of
around 41% of global market in telecommunication devices. The worldwide acknowledgment
meant that the company could easily sell any product with easy acceptance from the customers.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/10

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 10 pages?
Access Now
Unformatted Attachment Preview
Running head: MICROSOFT’S BUYOUT SEGMENT IN NOKIA Financial Research Paper on Microsoft’s Buyout Segment in Nokia Institutional affiliation Student’s name Course 1 MICROSOFT’S BUYOUT SEGMENT IN NOKIA 2 Introduction In the year 2014 Microsoft completed buyout plan on Nokia’s device making segment for a consideration amounting to $7.2 Billion. As reported by Steve Kovach on business insider article analysis, the acquisition plan involved taking over phone and tablet business segments. The acquired segment would then operate as a division under Microsoft division. The acquisition deal had been announced in September of 2013 but it took a while to finalize transactions in 2014 in adherence to set regulations. As at the acquisition date, Nokia’s windows phones and the initial plan was to take over the world’s market in smartphone industry, a move which favored Nokia at the time since other competitors such as Sumsung and HTC could not match high-tech capacity in producing high-end androids. Only iPhone dominated the market after entering in android segment in 2007. The acquisition arrangement further included licensing of its patents and mapping services to Microsoft. The employees of the company joined the acquirer, a move that saw around 32,000 employees transfer working agreements to Microsoft. Although the company boasted with technologically advanced research tools, the move to manufacture android phones took too long to completion as the giant fell behind ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
I was having a hard time with this subject, and this was a great help.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents