On Friday, we noticed Nokia (NOK) was trading at an unusually high volume. At one point, the stock was up 6%. So why the commotion over a struggling company? Buyout anyone?
The two companies rumored to be interested in a Nokia buyout are Samsung and Microsoft (MSFT). Here lies the complexity.
Microsoft obviously wants to be in the smartphone business and they currently use Nokia devices to run their Windows driven OS. If Samsung were to try and buy out Nokia, it would be a no brainer for Microsoft to outbid them, right?
Here’s the logic: If Samsung bought out Nokia, chances are they would be doing it to relegate Microsoft out of the smartphone business. One less runner in the race would certainly make things easier for them.
Microsoft, in all probability, would not like this idea and consequently, never let Samsung acquire Nokia. The acquisition is also doubtful because allowing Samsung to obtain Nokia would give them a potentially unfair advantage in the eyes of law makers. And do they really need Nokia since surpassing Apple (AAPL) in smartphone production?
What do you think the future holds for Nokia?
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Here’s more data on the companies that have something to gain/lose in this potential deal:
1. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world’s most popular search engine. Market cap at $188.52B, most recent closing price at $575.61.
2. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $534.59B, most recent closing price at $571.40.
3. Nokia Corporation (NOK, Earnings, Analysts, Financials): Provides Internet and digital mapping and navigation services worldwide. Market cap at $10.85B, most recent closing price at $2.96.
4. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $245.56B, most recent closing price at $29.30.
5. Motorola Solutions, Inc. (MSI, Earnings, Analysts, Financials): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap at $14.09B, most recent closing price at $48.34.
(Written by Ryan Horch)
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So many regulatory hurdles too