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by BuddhaSource 4668 days ago
Its great, Why do I feel 7.2B is very low?

The acquisition includes distribution channels around the world, factories, devices, R&D and softwares including google maps replacement Nokia Here, which in my opinion very good too.

When we compare this to a software starup Tumblr with 1.2B this seems very less. I could be wrong and missing something big.

1 comments

Nokia has lots of debt too, which makes It cheaper
Correct me if I'm wrong, but Microsoft is buying only Nokia's devices & services business, and debt will stay in Nokia. I tried to find any mention of the debt in official press release documents but I couldn't.
&die with
> Nokia has lots of debt too, which makes It cheaper

No.

Nokia has a net cash position of about €2 billion. (Was €4 billion before buying out the Siemens half of NSN.)

No debt is being assumed in this deal, and no cash is going along for the ride to Microsoft.

In any case, debt makes a deal more expensive if it is being assumed -- not cheaper. If it stays with the original company, then it has no effect on deal price.