Does Nokia Have a Future?
November 8, 2013 Leave a comment
The Nokia brick phone was the first cell phone I ever had. I remember being so excited for the black and white slightly-fuzzy screen and being able to play snake whenever I pleased. Another great component, these phones were practically indestructible.
The times have changed, however, and Nokia ended up selling itself to Microsoft earlier this year for $7.2 billion in cash. A letter was released to investors which disclosed that Dan Loeb, a hedge fund manager at his company Third Point, had purchased a stake in Nokia shortly after it was sold to Microsoft. Loeb clearly believes Nokia still has a future, and would like to have a stake in it.
“We expect a meaningful portion of the excess will be distributed to shareholders in coming quarters,” the letter states. Loeb is betting that a buyback or big dividend will draw in more investors, which will drive up the value of his stake.
Loeb wants to help create a new and innovative Nokia that will draw people in. He see the new Nokia consisting of three distinct businesses: Nokia Siemens Networks, the HERE maps business and a patent portfolio known as Advanced Technologies. Loeb said “event-driven situations” like Nokia’s transaction with Microsoft “are the bread and butter of our strategy.”
I think a new Nokia phone could really go somewhere. It would have to innovative, sleek, and like the old phones; indestructible. That is one aspect that is sorely missing from phones created today.
What do you think, does Nokia have a future in phones?