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Nokia Gets Slammed, Loses Value - What Does It Mean For Microsoft?

Posted on | May 31, 2011 | Comments Off

Nokia shares are down big today after a miserable earnings report.  Phones are both selling for less and volumes are down, a double whammy that is hitting shares.  I’m not too concerned for Nokia, but am more interested in what this might mean for Microsoft.

Currently, Microsoft has a deal to implement Windows Phone OS on Nokia handsets in the future.  I like the deal, and even more interesting is the possibility of a Nokia acquisition.  With the business losing value, would they be more likely to sell at an attractive rate to Microsoft?

Remember, Nokia is a foreign company (like Skype) and Microsoft could use offshore cash in the deal.  Nokia is a much bigger acquisition versus Skype but it could be an interesting opportunity.  Stay tuned on this one.