Home » Uncategorized » Nokia Microsoft Team Up, Bill Gates Dumps 90M Shares
nokia-microsoft-deal

Nokia Microsoft Team Up, Bill Gates Dumps 90M Shares

After all kinds of rumor and hearsay, the relationship is now official. Nokia and Microsoft are going steady. Elop and Ballmer even exchanged promise rings. (Okay, not really, but they may as well have.)

Nokia and Microsoft are teaming up to bring Windows Phone 7 to Nokia smartphones. It’s a move that almost sounds like it makes sense, since Windows Phone 7 shows some promise (but hasn’t really carved out huge market share yet) and Nokia is still a leader in hardware sales (though those numbers are quickly slumping).

The idea, I suppose, is that they can capitalize on their synergistic advantages, better equipping themselves to fight off the iPhones and Androids of the world. Remember that, up until now, Nokia has remained steadfast with using its own operating systems. This is a huge shift, but considering that Elop was once with Microsoft, it’s a move that shouldn’t come as too much of a surprise.

Unfortunately for both companies, this relationship could be ill-fated from the beginning. Nokia shares plummeted nearly 10% on the news and, in a strange twist of fate, Microsoft is paying Nokia “hundreds of millions of dollars” to use WP7. This comes in the form of “engineering assistance and marketing support.”

Maybe this synergy will work. Nokia has incredible economies of scale and it has a huge foot-hold in nearly every country around the world (though its presence in North America isn’t nearly as prominent). Windows Phone 7, even in its early stages, is showing promise and having Nokia’s level of reach could be most helpful. Then again, they could still be doomed. Time will tell. This is just the honeymoon period for these two lovebirds; wait until the “old couple” bickering comes into the picture. One thing is for certain, not many of Nokia employees are happy with the decision as 1000 walked off the job today.

It looks like Bill Gates dumping 90,000,000 Microsoft shares was a smarter move than many may have realized.

About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

Check Also

wii-oculus-rift-hoverboard

Try Oculus Rift And Wii To Roam Around On The Back To The Future Hoverboard

Check out how you can fly in virtual space by using an Oculus Rift and a Wii Balance Board.

131129-amz

Amazon Appstore for Android Holiday Deals, Including Free Apps

There are tons of deals from the Amazon Appstore that will be offered starting now and throughout the holiday shopping season. They say that they will have "hundreds of titles that are eitehr free... or available between 50-90% off" the regular price.

131129-google

Black Friday: Google Play Store Apps, Games and Content on Sale All Weekend

Case in point, if you head over to the Google Play Store right now, you'll find that Google is celebrating all Cyber Weekend with discounts on all sorts of content. This includes many popular apps and games

131129-gtab

Black Friday Deal: Samsung Galaxy Tab 3 10.1-Inch for $100 Off

Did you manage to score any epic Black Friday deals this morning? Are you still ...

131128-diy

Arduino Co-Creator Releases Plans for $200 DIY Mobile Phone

Mellis was one of the people who came up with the now hugely popular Arduino platform and now he has come up with plans for people to build their own cell phone for about $200 in parts.

131128-apple

No Discounts for Apple Black Friday, Just Free Gift Cards

If you were hoping to save yourself some cash as you brave the Black Friday shopping crowds, you'll want to go somewhere other than the official Apple Stores.

  • Fazir

    Great idea for Gates to return to MSFT …now Steve Ballmer can be the chairman of Intertainment Media in the social media area.

  • Dave Wanda

    I really hope that microsoft will pull it off this time. It is good to see them team up with nokia as this may bring good competiti