Nokia explains:
http://news.cnet.com/8301-1035_3-576...but-necessary/
Quote:
The decision to sell Nokia's devices and services division to Microsoft for $7.2 billion was a difficult choice, but market dynamics meant it was the only practical one, the Finnish company's outgoing CEO Stephen Elop and interim CEO Risto Siilasmaa said Tuesday.
"We need more combined muscle to truly break through with consumers," Elop said in a press conference in Espoo, Finland, where Nokia has its headquarters. "I share the frustration that comes from being so far behind two very large competitors," he added, referring to Apple's iOS Google's Android, but argued that "our goal of becoming the third ecosystem is becoming real."
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Quote:
The decision to sell off such a high-profile part of the company was "rational" but emotionally difficult, said Siilasmaa, who is chairman of Nokia's board of directors.
"It's evident Nokia doesn't have the resources to fund the required acceleration across mobile phones and smart devices," he said. "Nokia has done great work, however, the industry is becoming a duopoly with the leaders building significant momentum at a scale not seen before."
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Of note, the "Bank of Microsoft" will be lending Nokia $1.5B over and beyond the $7.7B sale price. They really were cash-starved.
Quote:
Microsoft also extended Nokia 1.5 billion euros ($2 billion) of credit, a deal that will go ahead even if the mobile-phone business unit fails. It's split into three 500-million euro tranches due to be paid back in five, six, and seven years
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