Microsoft’s Nokia Purchase Torches $16.6 Billion In Market Cap, Almost As Much As Ballmer’s Exit Added


On the news that Microsoft will purchase substantial assets from Nokia, including its handset business and intellectual property, company investors have discarded its stock, sending it down 6 percent in regular trading.

At current trade, that decline represents $16.6 billion in market capitalization, a stunning repudiation of the plan by investors. To put the decline in perspective, when current CEO Steve Ballmer announced that he will relinquish his role at Microsoft, the company picked up $18 billion in value.

Therefore, investors are, wittingly or not, stating that the exit of Ballmer is roughly as good as the purchase of Nokia is bad. Not Microsoft’s best day.

Why the Nokia purchase? Essentially, Nokia became the de facto Windows Phone OEM, building almost 90 percent of handsets that the line shipped. Given that level of dominance, and the fact that Microsoft had granted it special leniency to enact user interface changes…

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