Two huge and important deals have occured in the world of mobile phones recently, we look closer at them and how they could impact geekdom!
Vodafone this week completed one of the biggest deals in corporate history, selling its stake of US telecoms company Verizon for a staggering $130bn to its parent company Verizon communications. This deal, which ends a lengthy battle between the two companies with both parties finally agreeing to a price acceptable by all.
The $130bn (£84bn) deal was announced after the end of trading on the London stock exchange with the company set to return £54bn to its shareholders worldwide with £22bn of that coming to UK investors
Back in the UK, Vodafone has earmarked some £6bn for an investment plan called “Project Spring” which is designed to accelerate the introduction of 4G networks, allow the company to offer much faster broadband and add to Vodafone’s high street stores and augment their mobile payment services
The deal has become controversial here in the UK as it appears no tax will be paid, despite $5bn being paid in the US, this is because the US business is held by a Dutch company and therefore not liable to pay UK tax.
Although this has polarised many people, all should be glad to hear that even though there is no direct tax windfall, the economy should still benefit from the influx of cash
Computing giants Microsoft today announced that they are to purchase Nokia’s mobile phone business. The Finnish telecoms company agreed to sell their hardware and services divisions along with the licences for their portfolio of patents in a deal worth 5.4bn Euros ($7.2bn; £4.6bn)
Nokia shareholders have been delighted by a jump in prices of almost 35% whereas Microsoft’s fell over 5%
Microsoft has long struggled to compete in the mobile market with its main rivals Samsung and Apple as both the Android operating system and IOS regularly outsell windows phones. However, Microsoft acquires Nokia products such as the Asha and Lumia giving Microsoft a rare opportunity to try and join the smart phone elite with a purpose built and entirely original windows phone. Nokia, however, will be temporarily stepping down from the mobile market due to a non compete clause in the deal preventing any mobiles under the Nokia name being produced until 31 December 2015
Incoming CEO Risto Siilasmaa called the event “A day of re-invention for Nokia” echoing Microsoft chief executive Steve Ballmer who describes it as a “big, bold step forward” saying, in an interview with correspondents at the BBC that Microsoft is transforming itself from a company that “Was known for software and PCs, to a company that focuses on devices and services”
“We’ve done a lot of great work in the two-and-a-half years that we’ve been in partnership with Nokia, going literally from no phones to 7.4 million smart Windows phones in the last quarter that was reported,” he said.
Although this deal is still subject to shareholder approval and likely wouldn’t be complete until early 2014 we here at I AM GEEK wish Microsoft the best of luck if all goes their way and cant wait to get our hands on the new windows phone!
Source – BBC