On Wednesday, the shareholders of Nokia approved the sale of their devices and services segment of their business to Nokia. The expected approval should allow for the next steps of the sale to take place, and will require global approval before the final approval is given to Microsoft.
The $7.35 billion purchase was announced in the past couple months, and will allow Microsoft to purchase Nokia’s devices and services segment of Nokia’s business. The approval given in Helsinki will be integral to Microsoft carving out its future mobile strategy in the next years.
99.52% Support In Note
According to the vote details as released by Nokia’s press release, over 99.52 percent of the shareholders agreed to the purchase. Nokia’s chairman stated that the vote for the approval was expected and that the decision of selling the mobile phone division would bring about strong emotions. The old strategy wouldn’t have worked and this was the best for the company.
The Nokia share price though has doubled since the announcement in September, with shareholders and investors happy about the sale. Analysts agreed that the sales of a structural losing operation needed this type of bailout, and Microsoft was a perfect partner. It includes the Lumia smartphone trademark and technology in early 2014.
Background On The Sale
In notes that were released last month, Nokia was positioned well to handle the phone business in 2004 and 2005. But, as the mobile technology and mobile world got busier in 2007-2008, the company couldn’t handle the increase in business. It wasn’t able to quickly adapt and make the needed changes to move ahead and adapt.
Nokia hunted after Microsoft’s Stephen Elop in 2011, and thought that he would be able to save Nokia and its future. Unfortunately, that didn’t work, and Stephen Elop resigned at the time of the announcement of the sale. Questions about Stephen Elop leaking information back to Microsoft were mentioned. But, Microsoft has $80 billion in the bank and can afford to save Nokia.
I loved this sale from the beginning and love it now. It gives Microsoft the ability to make and produce phones and leverage Nokia’s assets for the mobile future.