Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Will Nokia Corporation (NOK) Downgrade Entice Microsoft Corporation (MSFT)?

Nokia Corporation (NYSE:NOK), the struggling mobile handset maker, got some more bad news Wednesday when Standard & Poor’s downgraded the company’s bond rating to BB- from BB+ and gave a negative outlook for the company. With that in the face of encouraging reports about Nokia’s all-in banking on the success of Windows Phone 8 when it launches soon, might this be a time that Microsoft Corporation (NASDAQ:MSFT) considers a noteworthy acquisition?

Stephen Elop & Steve Ballmer

Nokia Corporation (NYSE:NOK) has seen its overall smartphone market share take a tumble in the last couple of years, though the company is still producing strong results in emerging markets like South Africa and Indonesia, as we’ve reported before. The company has stated that it is due to release a new line of smartphones that will be designed to meet the needs of the Windows Phone 8 operating system from Microsoft Corporation (NASDAQ:MSFT). Nokia has been phasing out its proprietary Symbian operating system and is planning to be a very loyal partner for Microsoft as it launches its new smartphone OS. With all of the hype surrounding the new OS, and the now-symbiotic relationship between Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK), there is a lot to lose for Microsoft if Nokia doesn’t succeed, but there is a lot to gain for Nokia if Windows Phone 8 takes off as expected.

With so much at stake for Microsoft Corporation (NASDAQ:MSFT) in this alliance, and with the downgrades and overall negative outlook of Nokia Corporation (NYSE:NOK), a question is being raised – should Microsoft take the next step in developing a proprietary ecosystem (which it’s trying to do with the Surface tablet) and purchase Nokia? Well, the company did pursue this avenue before, but didn’t take the leap at the time because the stock was a bit higher than it is now. But with the stock wallowing at about $2.50 a share, and with the negativity surrounding the company moving forward, it’s possible now that Nokia could be had for a cheaper price than before.

The time could be right for Microsoft Corporation (NASDAQ:MSFT) to move, should it so desire. Nokia Corporation (NYSE:NOK) could be on sale now like never before, or may never be again, especially if the new Windows handsets succeed. The consideration of a Nokia takeover would likely be a boon for hedge funds that hold Nokia positions, like billionaire Jim Simons’ Renaissance Technologies, which took an $18.5 million position in Nokia during the first quarter of 2012 – after not having any stake prior to the new year. Check out the rest of Jim’s portfolio.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!