Microsoft’s influence on Nokia now said to be less than before acquisition deal

Although the Microsoft / Nokia understanding announced early terminal month caused shockwaves in the industry, many analysts have rightly been cautious about the acquisition of Nokia'due south hardware division. That's because the deal has non been finalized nor approved, by anyone, and the procedure is not expected to be completed until early on 2022.

The question on many minds though, including our own, is what are things like now between the 2 companies? One stream of thought is that Microsoft and Nokia are going forwards, working on devices, and that they have begun to merge divisions, knocking down those barriers that Belfiore referred to in an interview with CNET. Meliorate phones, more than exciting software, right?

All the same, Hal Berenson, a retired Distinguished Engineer and General Manager at Microsoft, says it is merely the opposite. In an insightful web log mail he notes that Microsoft is having piffling to no influence on annihilation Nokia is doing right now—in fact, it probably has less power than earlier the bargain was announced.

The reason? Anti-trust law. The companies tin can programme, but they cannot execute.

According to Berenson, both companies must act like the deal won't go forwards. Therefore, any direction Microsoft might give Nokia on new hardware, like the rumored Lumia 2520 tablet, could be seen equally collusion should the conquering be denied. Both companies need to be on their all-time behavior during these next few months, operating as independent businesses, while regulatory agencies pore over every aspect of the two massive organizations. Berenson goes on:

"Even some activities that the ii were pursuing, or planning to pursue going into the launch of GDR3 or even WP8.1, might get scaled dorsum as lawyers advise that they might now invite regulatory scrutiny."

Then while product lines and advancements between the two companies volition be intriguing subsequently the deal is approved, don't wait much during these adjacent few months. Berenson adds that this may be why Nokia can't abolish the Lumia 2520, even if it seemingly clashes with Microsoft's Surface 2 plans.

That's important because of sensational articles like those found recently on Bloomberg, who wrote a written report titled "Microsoft'southward $seven.2 Billion Nokia Bet Not Luring Apps". The announced deal, which was barely 30-days one-time at the fourth dimension, evidently warranted an early evaluation by Bloomberg on its success. In the trash piece, Bloomberg feigns research by interviewing "a dozen developers" and concluding "Microsoft Corp. (MSFT)'due south $vii.ii billion pairing with Nokia Oyj (NOK)'southward handset business organization is failing to win over the software developers who are crucial to its success."

The article didn't even bother to consider the impact of BlackBerry imploding, simply evidently a non-approved acquisition with no material touch was fair game.

Make no mistake, the existent story betwixt Nokia and Microsoft has not begun. And so while some developers may non be "convinced", nosotros're non exactly certain what they are using to evaluate the deal, since literally null has come of it even so.

Microsoft and Nokia take made huge strides with Windows Phone in 2022, but the existent story of Microsoft's acquisition of Nokia's hardware division won't happen until mid-2014. Anyone who tells you otherwise, is full of it.

Source: Hal's (Im)Perfect Vision; Bloomberg

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