Nokia Said to Buy Out Siemens - Bloomberg / NYT

[wmedwards]

Per NYT and Bloomberg Nokia has bought out Siemens half of joint venture for 2.2 billion US$. Guess that's why BOD was called to Finland.

http://dealbook.nytimes.com/2013/06...ment-joint-venture/?partner=yahoofinance&_r=0

 

[birdman_38]

How will this investment benefit Nokia?

 

[edoug]

Well, having profitable stakes in LTE can't hurt and should give them another leg up in future hardware development and future directions of the standards.

 

[benrp]

How will this investment benefit Nokia?

NSN is profitable and with the rollout of 4G as well as recent cost savings should keep it that way, so should be beneficial to Nokia's bottom line in the long run, particularly seeing as 2 billion is apparently very cheap.

 

[wmedwards]

I agree... For a so called struggling company to invest roughly 20% of it's liquid cash assets in this buyout should mean that they are pretty comfortable with the state of business going forward. Yeah, from what is stated it is a bridge loan but I myself see this is a win for Nokia. We will see how the market reacts in the morning. Also sure this was a sticking point in the Microsoft talks last month. A 20 % market share in LTE can't be a bad thing,,,, Right?