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Breakingviews: Microsoft's mobile chains

Tuesday, Sep 03, 2013 - 03:29

Sept 3 - Breakingviews columnists discuss how the $7.2 bln acquisition of Nokia's handset business by Microsoft will make it even harder for CEO Steve Ballmer's successor to start fresh.

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Lots of big deals to talk about after the summer holidays we're gonna focus on one that maybe could be the worst of all. Microsoft's decision to buy. The handset business from Nokia. But deal maybe could have been expected given the -- a lot of the links and ties here but. It really sets up a problem. You girls they've put myself. There's a couple of things right steeple of the seeded. Just said he's going to be retiring the next twelve months so posts but the parting gift to get if living big body gets seven point two billion those with the acquisition. All of this business from Nokia Sony get of course this tragedy goes beyond Pullman the idea of making devices which Microsoft has not so this'll be great against -- bullet to the -- in the senior executive team on the other hand. If you're looking -- -- -- -- shall you want somebody's gonna take it fresh look at the whole business that -- is this the right strategy do it wouldn't do it now it seems the boat is stuck. With hiring somebody does agree that the strategy. I mean HP kind of pat you know to this whipsaw thing where they are gonna have a you know an ACL came in they had this business. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Out of market thing. Actually we're not gonna do that they've wiped off 5% of my. -- caps and all of our retirement gains -- is slowly disappear quickly actually and I think you can retire again and get depressed I can put a what everyone is -- concern I mean you know Microsoft's track record them today not greatly. She writes in the big deals right a quote is was this online ad agency. Back in 2007 that basically had to write off the whole amount don't really know about. Skype. Eight and a half billion. Not clear that -- saying. Right -- value come out of that that would justify that commitment right to me about them up or knows that went and -- -- So there's that then this is another big ones. And here you -- saying well they've got. Yet you could make a lot of money out of making handsets if Microsoft and -- peeking get the design right Microsoft. Can get the software right and they can that -- access to I think steeple was talking about maybe 15% to right now it's. Blows single to right like 3% say it's a huge mosque and also if you've got not a navy got that talent jewels that -- -- talent because that now that unit. Loses money. So what do. I -- acquiring a successor which is sort of and it's very expensive successors or anything but I mean Stephen Elop who used to be a Microsoft right to run Nokia now is coming back with this deal yet I mean they're they're cheaper ways to do it surely that debate seven billion dollars for. You know confident that -- and it's not doing very well at all and in the company's out of your core -- your core area. It seems like they've got that bad people internally that they could've hired him play and still might but did admit it fueling external candidates who used to work for Microsoft -- a lot of people in the mix up basically forced out a lot of see immaterial a company. It's very chilly night and back from us for a small arms now. All right we will keep an eye on -- Microsoft and we will be back with more breaking views tomorrow.

Breakingviews: Microsoft's mobile chains

Tuesday, Sep 03, 2013 - 03:29

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