Microsoft’s $100 billion Nokia acquisition!! What da?
Mobile Industry Review posted the news this morning. I hope they are playing april fool’s prank , but not sure. The whole deal is that Microsoft acquiring Nokia for $100 billion in a mixture of cash and equity.
Steve Ballmer of Microsoft got up on stage at 7am this morning in London to announce that they intend acquiring Nokia for $100 billion in a mixture of cash and equity — a substantial premium over the company’s $58.2 billion market cap. The markets are going nuts, as one might expect, with Nokia shares topping $20 each, sending their current valuation to well over $74 billion already. Ballmer and the team at Microsoft presumably expected this rally based on their tabled offer. Of course, it’s important to point out that this is just the opening gambit and that although Ballmer claimed that institutional investors (who account for a large portion of Nokia stock) are in favour of the deal, there is no guarantee that they’ll be able to reach agreement for the whole company.
But there’s a sweetener: Microsoft is offering Nokia shareholders 2 shares for every Nokia share — a smart move seeing as Microsoft’s market capitalization closed yesterday well north of $250 billion.
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