How much has cost the failure of Nokia to Microsoft? At the very least, 8 billion – Gizmodo in Spanish

Steve Ballmer and Stephen Elop, the CEO of Microsoft and Nokia respectively when the acquisition occurred. Picture: AP

It is said that the cries of Steve Ballmer could be heard from outside the meeting room when the board of Microsoft did not support their plans to buy Nokia’s mobile division. At the end he convinced them and the companies signed an agreement of 7,200 million dollars. The damage was done

http:. //es.gizmodo.com/nokia-y-el-fra …

Buying Nokia has been a monumental failure to microsoft from the start. In 2013, after the agreement, they won 25,000 employees. In 2014, already with Satya Nadella as new CEO, cut to the chase and fired 18,000 people. In 2015 they announced the dismissal of 7,800 more workers. And now Microsoft has stopped on the street to 1,850 more employees, 1,000 of them in Finland-a country where the design and production of the Lumia remained.

The new layoffs represent an impact of $ 950 million for the company, perhaps the death knell for the Lumia brand. In the last quarter, Microsoft sold 2.3 million Lumia devices (73% less than the previous year) and suffered a fall of 46% in revenue. Nor much amortized the $ 350 million that Microsoft entered by the recent sale of the division of basic mobile Nokia, which went to Foxconn.

Satya Nadella was against buying Nokia before becoming CEO of Microsoft

But in Redmond they refuse to admit that Lumia is finished. Terry Myerson, head of Windows and devices, wrote in an internal memo about the layoffs that Microsoft will continue to “upgrading and supporting the current line of Lumia phones and terminals manufacturing partners” and return to develop “cool new devices” .

There are at least eight compelling reasons for which Microsoft bought part of Nokia (among other things, Nokia controlled 90% of the market share of Windows Phone) and it is hard to say I retrospect that another option would have been better to increase the relevance of Windows on mobile. But the truth is that buying has become a drain Redmond and Espoo, the city where Nokia was founded. The failure of Nokia has cost Microsoft, at least, the 8 billion dollars from the purchase and subsequent layoffs.

[The Verge, Recode]

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