Microsoft refines the machine with the purchase of Nokia by 5.440 million - The País.com (Spain)

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market share. To that end, Microsoft has launched a business purchase wireless devices from Nokia, a business that is overwhelmingly dominated by Google Android and Apple iOS. To do this, you will pay 7,170 million dollars, about 5,540 million euros to the Finnish company. It is a move identical to the Google starred two years ago with the acquisition of Motorola Mobility. Also, Nokia is the end of a century-old brand that became the largest mobile phone maker in 1998 and he held the scepter until last year, when he ceded it to Samsung.

Summer is still intense for Microsoft. The Redmond giant mid July started with a plan to reorganize the company, looking to all divisions operate as one unit and gain in flexibility to innovate faster. A month later, Steve Ballmer announced he will leave the CEO position within 12 months when you are substitute. And now again given the surprise with which the operation is done with mobile its great partner. There are three motions on which speculates on Wall Street and in Silicon Valley in a while, and all three have the same meaning: to recover lost over Microsoft in the business of mobile computing, where computing founded by Bill Gates pioneered .

Besides mobile devices, Microsoft is also controlling business services. Essentially, you are buying almost all Nokia, which dates back 150 years and operates in the telephone business since 1966. The move is also relevant in the context of the succession of Steve Ballmer. The Canadian Stephen Elop, CEO of Nokia Corporation, is one of the names circulating as potential external candidates.

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Elop is the candidate

Fifty

• meetings in Barcelona
• ‘Next Chapter’ open letter from Steve Ballmer and Stephen Elop
• Steve Ballmer will leave Microsoft command within a year

Microsoft raises

• 28.7% profit last year

Elop

Future

Elop, who before coming to Nokia in September 2010 spent nearly three years as head of Microsoft’s business division, will have a seat on the board of the owner of Windows. In fact, his appointment to head the Finnish company was seen as an operation designed by Ballmer himself to reach this situation. Not even six months spent in office when Elop Nokia announced a new strategy that ended the Symbian operating system was developed and put at the mercy of the new Windows. With this movement became Microsoft’s main ally in the battle being waged against Google and Apple. The executives are now talking about an “opportunity” for growth.

As in the case of Google and Motorola Mobility, buying Nokia gives Microsoft a platform to develop future phones that work with Windows. Also gives access to a large portfolio of patents. In fact, the total U.S. company pays about 1,650 billion for the TV rights of the Finnish technology.

Conversations in Barcelona

Although everything started to take shape two and half years ago, with the alliance to boost the mobile version of Windows, actually talks to close the purchase agreement were launched in February to coincide with the Mobile Fair Barcelona. To defend the purchase, Ballmer is now supported in “good results” that is giving the association.

Windows market is essentially Nokia phones at this time: more than 80%, according to Ballmer. In this sense, the integration Elop said Nokia and Microsoft “natural reduce friction” between the two company. “We have two and a half years of experience working together. Already know us, we know how to solve problems together.” “We will do better as a separate company,” Ballmer predicted.

Currently, Microsoft earns $ 10 for each device sells Nokia with Windows. Following the acquisition, that number will quadruple, to $ 40. Ballmer admits it is logical to have your own device “to ensure the presence” of your operating system. “The other alternatives were prohibitively expensive” clinched. In fact, expects to double sales of mobile phones, this operation is profitable in year and a half after the transaction closing.

But

supports Microsoft CEO yet, “there is still much to do.” Microsoft accepts this way you need to play harder to get back to being a major player in the industry, and Nokia could not compete. And that will be the challenge that will face Ballmer’s successor, who pressured by investors were forced to anticipate his departure from the company.

Nokia

problems

Nokia, meanwhile, draws serious problems since the advent of the Apple iPhone six years ago. From being the dominant player in the sector, has gone in a few years to lose all relevance to the point of failing to break into the top five largest mobile business. With the Lumia managed to reverse the situation, but his solo adventure was not enough against the strength of its rivals, which now joins the MotoX on Google.

mobile computing business is essentially about two operating systems. Google and Apple will eat 86% of sales in that market, while Microsoft does not reach 4%. Although the two companies are complementary and buying Nokia says the idea that Windows will be the pillar on which will rotate the new Microsoft, Wall Street is still seen as a move operation to buoy operating system, so there is still questions about whether the move will succeed.

Abundance

cash

The operation is expected to be completed by the first quarter of 2014, when they will have to overcome the vote of the shareholders and the examination of competition regulators. The time of purchase is not accidental. Microsoft is loaded with cash, much of which is outside the U.S. to avoid paying taxes. It is with this money that basically finance the purchase.

addition, the economic downturn in Europe and its impact on consumption makes European companies are eager to cash in order to balance their finances and has fresh money to invest when the coveted rally, as seen on Monday in For Vodafone