Microsoft and Nokia Merged Research Paper Example | Topics and Well Written Essays - 3250 words

Microsoft and Nokia Merged - Research Paper Example Microsoft and Nokia are both renowned and well-known ICT companies, where the former specializes in user convenient communication software systems and the latter holds a distinct position amid its customers in the mobile communication industry. As per analysts’ reviews, the merger between Microsoft and Nokia also served the purpose of meeting the needs of their customers and further expanding their business size, along with bringing success in their own respective fields2. In order to gain an in-depth understanding about the merger process between these two ICT giants, i.e. Microsoft and Nokia, it is necessary to overview the background of the companies and to understand their needs of entering into the contract. Microsoft, founded in the year 1975 in State of Washington, operates its business through the development, manufacturing and licensing of variety of software products and also computer hardware devices3. Apart from this business, the company has recently expanded in t he fields of manufacturing telephonic devices such as tablets, which can also be considered as one of their recent expansion strategies that required a beneficial market penetration strategy. Due to its huge turnover and advanced technology innovation capacity, Microsoft has emerged as one of the successful technology companies in the entire world in the current decade4. Correspondingly, Nokia is a Finnish company, which placed itself in a remarkable position in the history, by creating the first radio phone in 1963. Since then, the company has been successful in manufacturing more of the modern and advanced technological communication appliances in the international market. Nokia became more popular in the entire world with the production of small and comfortable mobile phones and following the introduction of the integrated technology. It is also considered as one of the fastest growing companies in the present competitive environment and also as a responsible company, which accep ts the suggestions of its customers as well as believes in equal treatment to all its employees5. THESIS STATEMENT This research paper has been prepared with an intention of gaining knowledge on the incident of the merger that has recently taken place between Microsoft and Nokia in the year 2012. Correspondingly, the major sections that have been described in this research paper are the reasons for the merger, advantages that both the companies have derived and also the possible drawbacks of the incident to critically assess the worthiness of the strategy. REASONS FOR MERGER BETWEEN MICROSOFT AND NOKIA In recent news article named â€Å"Why Microsoft really bought Nokia† one of the journalists named Robert X. Cringely remarked that the incident of the merger between Microsoft and Nokia was somewhat like â€Å"two stones clinging together trying to stay afloat†6. The reason for quoting these words implies that the incident was really a matter of interest for all the gia nt companies around the world. In the process, Microsoft acquired Nokia at a compensation price of 7.2 billion US dollars in 20127. A tender offer was considered as the major mode of acquisition in case of merger between Microsoft and Nokia. Subsequently, Microsoft made a proposal to the majority of the shareholders of Nokia with an intention to buy the