Boston, MA, 11/21/2013 (wallstreetpr) – Investors of struggling Finnish mobile handset maker Nokia Corporation (ADR) (NYSE:NOK) are keen to see through the acquisition of its devices and services division by global software technology leader Microsoft Corporation (NASDAQ:MSFT) for approximately $7.18 billion, with over 99% of the Nokia investor community voting in favour of the purchase. According to the agreement, Microsoft will pay approximately $5.1 billion to get the complete Nokia Devices & Services wing, with an additional $2.21 billion for related licensing patents. Expected to complete during the first quarter of 2014, the transaction is currently pending regulatory approvals and various mandatory closing conditions.
Nokia Corporation (ADR) (NYSE:NOK)’s recent financial results for its third quarter of 2013 reveal Nokia’s revival capability by posting an operating profit of around $160 million over $7.8 billion in revenue, up from its $757 million in losses a year ago, effectively reducing net losses from roughly $1.2 billion in the third quarter of FY2012 to around $143 million in its recent quarter. Excluding Nokia’s Devices and Services division, which Microsoft will now acquire, Nokia’s profitability stands out, with overall revenue of $3.8 billion yielding $280 million in profits.
Meanwhile, the Finland-based technology giant, once the world’s numero-uno of mobile handset technology before Samsung raced ahead, has seen moderate success in its risk-prone collaboration with Microsoft, with progressive worldwide sales for its latest innovations designed for Microsoft’s much-touted Windows 8 Phone operating system, under its flagship Lumia product line. Selling just over 8.8 million devices of the Lumia range during the third quarter, Nokia Corporation (ADR) (NYSE:NOK)’s risky strategy made good headway, compared to the 7.4 million sales for the previous quarter and the shallow 2.9 million sales for the third quarter of 2012.
Riding on the Microsoft acquisition in the offing, Nokia stocks showed significant upward movement, almost doubling share value over the last 60 days. Nokia Corporation (ADR) (NYSE:NOK)’s latest closing of $7.94 in NYSE trading on November 20 showed a 1.8% rise from its previous close at $7.8. The shares were trading between $7.92 and $8.02 during after hours.
