Microsoft might have to bail Nokia out

May 8, 2012
By Nigel Chew


 


08 May 2012 – As Nokia continues to struggle against its competition in both the smartphone and recently, the broader mobile market as well, company CEO Stepehen Elop may be looking towards his former bosses, Microsoft for a helping hand.


Reuters report that the partnership between the two companies may well be Nokia’s last chance to turn its fortunes around. As it stands, Microsoft is already paying Nokia USD 1 billion a  year just to use the Windows Phone platform, with many speculating that the tech giant might have to step in further should Nokia’s woes intensify.


“If Nokia ends up in financial difficulties I believe the helping hand would be there,” said an analyst at Nordea. Another technology banker agreed, saying “I don’t see Microsoft owning Nokia, but it would definitely provide financing to the tune of a couple of billion dollars.” As such, if Microsoft were to ever support Nokia, it would most probably be in a form of an inter-company loan or equity stake rather than a full takeover.


Source: Reuters


 



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