Microsoft could write off billions on Nokia deal

by Volker Weber

More 'tough choices' for the company as it tightens strategy and admits Ballmer's mistake. ... The Nokia acquisition was one of the last moves made by former CEO Steve Ballmer, who stepped down in February 2014. The deal, revealed the previous September, has been both acknowledged by analysts as necessary to remain a player in mobile, and criticized for its inability to improve Microsoft's fortunes in the smartphone market. Current CEO Satya Nadella was reported to have opposed the acquisition.

I concur with the author that Microsoft has to adjust the books on the Nokia deal. And I don't think that Satya Nadella needs Windows 10 on phones to execute on his strategy. It's very telling that Microsoft misses the mobile boat on the Windows 10 launch in four weeks.

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Comments

They've been drumming up the Windows 10 as a platform and Universal Windows Apps story quite a bit. And it seems to me mobile is a huge part of that story. Writing off the Nokia deal is like telling the SEC and IRS that Windows Phone is a bust, while at the same time selling to developers Windows 10 Mobile as the future. I'm curious how they are going to pull that of 😄

Max Nierbauer, 2015-06-30

Mobile plays a big role for Microsoft... but it could be more or less any mobile platform. Well, they prefer the most successful ones. And Windows Phone is not amongst them. I am really curious how the WP path will go on..

Ingo Seifert, 2015-07-01

Max, the accountants don't have a choice. Goodwill is the difference between the purchase price and the actual assets. That's the money they may need to take out of the books.

Volker Weber, 2015-07-01

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