Finnish company’s deal with Microsoft assumes significance
Finnish phonemaker Nokia saw its value surge in Helsinki trading, rising to the highest in one and half years after the acquisition of Motorola Mobility by Google yesterday.
According to Bloomberg, Espoo, Nokia rose 34 cents, or 9.1%, at the close of trading in Helsinki, the highest increase since January 2010. The surge valued the company at EUROS 15.3bn. Microsoft also rose adding 0.9%.
It has been suggested that the rise is because of fears that Android using mobile manufactuirers may move away from Google, thereby increasing the popoularity of Microsoft’s Windows Phone OS.
Nokia has already signed a software partnership agreement with Microsoft in February.
In May, there were rumours that Microsoft may buy Nokia, which were dismissed by Nokia CEO Stephen Elop as "baseless".
Yesterday, Google had announced it will acquire Motorola Mobility in a deal worth $12.5bn.
The search giant says the move will enable it to "supercharge" the Android ecosystem and boost its patent portfolio, protecting it from threats from Microsoft and Apple.
The cash deal is valued at $40 per share and represents a 63% premium on Motorola’s share price at the close of trading on Friday, 12 August.
However, Google CEO Larry Page has sugested that Motorola may not get preferrrential access to the company’s Android OS.
Google is "committed to making that whole ecosystem successful," said Page.
The deal has also been supported by existing users of Android, including: HTC, Samsung, Sony Ericsson Mobile Communications AB and LG Electronics, said Google.
Samsung, HTC and LG all rose in Asian trading following the deal.