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Tuesday, 26 November 2013

Nokia and Microsoft - What are Microsoft playing at?

In 1967, Nokia, a well known paper manufacturer, changed it's production into phones instead. They were coming up with breakthroughs, new features, ideas, concepts that were amazing to the generation then. Nokia was huge. Then came Apple, Samsung, Microsoft, Google and lots of other companies, in the technology industry. Nokia was shot down completely. They attempted to save themselves with the Nokia N8 and Nokia Pureview, as well as with numerous computers, however, Apple and Samsung had pushed it out of there way. Nokia was pretty much over, and just wheeling along. Now, a couple months ago, Bill Gates - Owner of Microsoft, who is the world's richest man, bought Nokia. A company that owned controlled more than 30% of it's market, bought a company that was running off scraps. What was Mr Gates thinking, we were all wondering. Some say it was because Microsoft wished to see Nokia as a market player once more. But those were really naive people, looking at the deal from a very optimistic angle. Here is the real reason, well, what iBusiness Time thinks. Microsoft and Nokia had close relations, researching, developing, coming up with new ideas! Microsoft had been paying Nokia to help, which is becoming quite common in the business world! Microsoft needed to put more of it's money into production of the researched ideas! To do this, they splurged 7.2 Billion Dollars on Nokia, to remove the costs from it's path, and pump more money into production! I myself was thinking of it optimistically, but then I thought, why would a global market player, buy a company that would've been lucky to claim a few per cent of the market! But then I thought logically, I looked on Forbes (which by the way is amazing), and this is what made sense to me, and what was the possibility!


http://www.memecenter.com/fun/2166395/so-microsoft-bought-nokia

Sources: http://www.forbes.com/sites/timworstall/2013/09/08/the-real-reason-microsoft-bought-nokia-transaction-costs/

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