There are plenty of theories about why Microsoft is buying Nokia, but two analysts say that the real reason was that Nokia was soon going to end manufacturing Windows Phones. Are they on target, or completely off base?
In the $7 billion cash purchase, Microsoft is buying Nokia's Devices & Services division.
That division includes both the smartphone and mobile phones businesses. As part of the deal, Microsoft is also licensing Nokia's patents.
Nokia CEO Stephen Elop becomes a Microsoft employee again as executive vice president of Nokia's Devices and Services division. Many people view him as having an inside track to taking over as CEO when Steve Ballmer leaves within a year.
The two companies have been meeting for quite some time about a possible purchase, and there are plenty reasons that the deal makes sense. But two analysts say the real reason was that without the buyout, Nokia was going to stop making Windows Phone devices, notes Business Insider
. Business Insider reports that "Two analysts, Ben Thompson of Stratechary and Benedict Evans, assume that Microsoft had to buy Nokia because Nokia was going to stop making Windows Phones very soon."