The recent acquisition of Nokia device business by Microsoft in $7.2 Bn including patent license fee attracted lots of analysis. Few analysts came out and called it expensive buy whereas other’s view was different.
In my point of view, if one consider all the payouts Microsoft did to keep Nokia initiative running then it crosses more than $10 Bn. Firstly, Microsoft supported Nokia when they decided to choose WM OS as default OS for Smartphone segment. In addition, Microsoft paid for marketing to Nokia, which was supposed to be returned back post 2 years. In concluded deals, there is no mention of said financial support from Microsoft. As per Nokia financial report, it runs in few Billion $. On adding all, the deal is going to be more than $10 Bn for loss making device unit.
In my point of view, Microsoft paid generously to buy out Nokia base. It would be interesting to see how successful Microsoft would be to increase its hidden agenda of growing other business to compete with Google.
