Microsoft considered buying Nokia but walked after seeing their books

By on June 11, 2012, 3:00 PM

Nokia’s fall from grace as the world’s leader in the mobile phone industry has been well documented. Reports of buyouts from Microsoft and Samsung have sparked some interest this year but thus far, nothing has materialized. This led the team at The Register to look deeper into the potential acquisition by Microsoft and this is what they found.

According to their “well-placed” sources, Microsoft was given access to Nokia’s books late last year as part of an evaluation process to see which (if any) divisions were worth purchasing. As the story goes, Microsoft wasn’t impressed with what they saw and walked away from any potential acquisition.

This of course means that rumors of a Microsoft buyout from earlier this year were completely baseless but gained traction regardless because the whole idea seemed plausible. The publication points out that there are two simple reasons why Microsoft doesn’t already own Nokia: Microsoft didn’t want to buy and Nokia didn’t want to sell.

Both companies still have cash and time on their hands. Nokia could mount a comeback in the next 18 months and Microsoft could have a much stronger ecosystem by then. But in the event that Nokia still hasn’t made significant gains, a buyout from Microsoft would make much more sense at that point.

Nokia shares recently fell to a 15-year low and have lost $0.40 in value in the past 90 days. Things were starting to look up on Friday as prices climbed six percent per share following rumors of a Samsung buyout but as of writing, those gains have fully diminished as the stock sits at $2.83.

User Comments: 5

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Guest said:

I doubt Microsoft would get Nokia. Like the purchase of Motorola by Google it would have to pass muster first. I must say that it wouldn't be in Nokia's & Microsoft's best interest. A wise chioce would be for Microsoft to get a tablet/ laptop company and go from there. Mobile computing is the future and will be for a long time. Cell phones are Now smartphones. If Microsoft picked up say Hewlett Packard Mobile division then maybe it would be worth it. But Nokia is at a dead end. Its days are numbered.

Guest said:

No one likes Microsoft phones, and I'm pretty sure its less than 2% of mobile market that use windows on there phone. Without the software of hardware you going noware.

Teko03 said:

No one likes Microsoft phones, and I'm pretty sure its less than 2% of mobile market that use windows on there phone. Without the software of hardware you going noware.

WP7 is a great OS, I love my Windows Phone device. it's just the fact that MS came a little late in the ball game (after their failed WinMo OS). Everybody has already sided with with Android or iPhone (both consumers & developers). WP8 will probably be MS's last shot at being a competitor.

TJGeezer said:

It'd be a mistake to count Microsoft out just yet. Vista had me convinced my next major OS switch would be to Linux, where by then I was spending half my time anyway. Then they came out with Windows 7 and everything changed. They could do the same with mobile, seems to me, especially given how fast not-quite-PCs mobile is converging with the not-quite-phones heirs of the desktop. And Microsoft is nothing if not competitive.

LookinAround LookinAround, TechSpot Chancellor, said:

Microsoft may be able to walk away from Nokia's Smartphone but it can't walk way form other parts of Nokia. The little mentioned fact is that Nokia also provides Microsoft with map data which Microsoft really, really needs from Nokia. For more detail, see [link]

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