Rumour: Microsoft and Samsung considering Nokia buy-out

NokiaNokia’s stock recently hovered hit a 15-year low (giving it a market capitalization of about US$4 billion), prompting new rumours of an imminent buy-out. Both Microsoft and Samsung’s names have been tied to these.

There were rumours a year ago which valued a deal at US$19 billion. According to The Register, Microsoft considered a buyout late last year, according to “well-placed sources.” Talks advanced far enough that Microsoft was given access to Nokia’s books after which it “ran away screaming.” Microsoft could have made a move to keep Nokia from being bought out by a rival but it appears that none came forward. With neither company really interested, the deal went nowhere.

This is not to say that it might not resurface. Nokia is a much cheaper company today. It is still burning through cash reserves quickly and could run out of cash. At that point, it’s likely that Nokia would be even cheaper than it is today and might be a better acquisition target. Of particular interest would likely be its intellectual property portfolio and for a company like Microsoft, the years of experience working as Microsoft’s flagship OEM.

A second report suggested that Samsung also looked at acquiring Nokia. Rumours emerged last week, giving Nokia’s stock a jolt, but Samsung today denied that there was any truth to them. “Such reports are purely speculative and are not true,” the company said.

  • Like Microsoft, it’s not the first time that Samsung’s name comes up in Nokia acquisition rumours.
  • Read more: The Register and Reuters