Microsoft looking to buy Nokia’s mobile division?
Rumour-mongering is a dangerous business, but don’t blame us for getting a bit hot under the collar with this tit-bit. Eldar Murtazin, has just described plans of Microsoft purchasing Nokia’s mobile division in the coming year. Who is Eldar Murtazin? Eldar is Russia’s go-to man for mobile technology. A modern-day Robin Hood of sorts for mobile enthusiasts. He has acquired numerous prototypes — well before release — over the years and even brought to light Microsoft and Nokia’s Windows Phone 7 agreement before any formal announcement was made to the public. According to his blog, they two tech giants will enter into discussions as early as next week, and could reach a formal agreement by the end of the calendar year.
Why we should believe Eldar?
- Microsoft likes splashing the cash: Unless you’ve been living under a rock, you will know that early last week Microsoft formally announced their purchase of VOIP giant –Skype. The figure involved in the transaction: a whopping $8.5 billion. Microsoft have also tried to acquire Yahoo in the past for figures north of $40 billion.
- Microsoft and Nokia are already thick as thieves: Earlier in the year the two companies entered into an agreement to bring Nokia smartphones running Windows Phone 7 to the market. Analysts widely believed Nokia would opt to join the Android bandwagon, but surprisingly this wasn’t the case. Expect to see Nokia branded Microsoft phone hit retail in the coming months.
- Eldar has a decent track record: Not much to elaborate here, the guys has hit the nail on the head in the past on various matters.
- Microsoft want a bite of the Apple: Apple this year overtook Microsoft as the worlds biggest tech company and posted bigger profits than Microsoft for the first time in over 20 years this financial quarter. And to nobody’s surprise it wasn’t Apple’s computing solutions that were driving their bottom line, it was their mobile solutions (read: iPhone, iPad, iPod). Microsoft are finally polishing their mobile OS after years of sub-standard code (Windows 5,6) and now in Nokia have a partner that have established themselves as class purveyors of mobile phone hardware. This could be Microsoft’s chance to take a swipe at Apple and establish themselves in this burgeoning space.
- Nokia software doesn’t cut it: It’s no secret that Nokia have been missing the target with their OS solutions. Symbian is on its last legs and MeeGo is not drumming up the hype it promised. Windows Phone 7, might — and I emphasize the ‘might’ — be the key for Nokia’s future.
- Nokia and Microsoft share the bed: Ex-Microsoft head honcho, Stephen Elop, is running the show at Nokia as their CEO. He will be key if such a partnership should be struck. If anyone can see the future for these two giants, it’s him.
[ad#ga-cbox-right]Why we shouldn’t believe Eldar?
- What’s in it for Nokia?: It seems unlikely that Nokia would like to put all their eggs in one basket. Such an acquisition would rule out their option to take the (would be successful) Android route in the future. Will Windows Phone stand the test of time?
- All or Nothing: Should such an acquisition take a turn for the worse, both parties will have a lot to lose. Considering that an acquisition of the sort is likely to cost around $30 billion, is it worth the risk?
- Nokia like flying solo: Nokia may be seeing its smartphone market share dwindle the world over, but Nokia are still the largest manufacturers of mobile phones in the world and still hold 32.7% of the worlds mobile marketshare.
- Eldar is talking ****?: There is small but distinct possibility that Mr. Murtazin might be blowing some hot air. Given the magnitude of such news, here’s to hoping this isn’t the case.