#Nokia

Jun 28, 2021
4 min

Case Study of a Failed M&A— Introduction to Microsoft’s Acquisition of Nokia

On September 3, 2013, Microsoft announced that it would acquire Nokia’s mobile phone division for $7.2 billion. Through a series of missteps, many of them cultural mismanagement, Microsoft informed the public in May 2016, of its intention to write off most of the $7.2 billion it paid for Nokia and agreed to sell the mobile devices unit to HMD Global and Foxconn Technology for just $350 million. This series uses the Mergers and Acquisitions Synergies Framework to explore the c

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Oct 25, 2018
2 min

Case Study of a Failed M&A—Concluding Thoughts on Microsoft’s Acquisition of Nokia

. The research conducted in this paper is based upon the Mergers & Acquisitions Synergies Framework, developed by combining outside findings by Geert Hofstede, Erin Meyer, and Sidney Gray. It is limited to national culture factors, which play a different role in business than organizational culture. Further studies may need to be conducted to help distinguish differences between national and organizational cultures. In reality, Microsoft’s acquisition of Nokia was doomed to f

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Oct 24, 2018
5 min

Case Study of a Failed M&A—The Role of Accounting and Finance in Microsoft’s Acquisition

Nokia provided financial reports using IFRS while Microsoft reported using US GAAP. Differences in national culture combined with different reporting requirements creates accounting and finance cultural differences. These differences can lead to financial reporting misunderstandings and possible valuation problems. Though there is little public information surrounding the rationale behind Microsoft’s valuation of Nokia, a consensus is that Microsoft paid too much for a com

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Oct 22, 2018
3 min

Case Study of a Failed M&A—The Role of Environment in Microsoft’s Acquisition of Nokia

The citizens of Finland were unhappy with the announced Microsoft-Nokia merger. The Finns had long felt national pride from Nokia’s success. Giving up control of this national company to a foreign entity was a blow to their identity. Microsoft did little to alleviate the Finns’ concerns. Public Acceptance Public Perception News and media critics (as well as citizens) in both the U.S. and Finland expressed dislike for Microsoft’s acquisition of Nokia’s mobile unit. From Micros

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Oct 17, 2018
4 min

Case Study of a Failed M&A—The Role of Management in Microsoft’s Acquisition of Nokia

Management turnover during the period surrounding an acquisition is challenging, particularly when new leaders don’t share the same passion for the merger. Leadership change created uncertainty for Nokia employees. Announced layoffs coupled with differences in leadership style created more suspicion and distrust of those leading the merged companies. Had Microsoft been sensitive and aware of differences in the way Nokia employees view and interact with management, many probl

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Oct 15, 2018
5 min

Case Study of a Failed M&A—The Role of Behavior in Microsoft’s Acquisition of Nokia

Microsoft discovered that Finns’ views on work-life balance are different from those of Americans. Behavioral misunderstandings caused tension and friction between US and Finnish management teams and employees. Many problems could have been avoided had Microsoft embraced Nokia’s corporate and Finland’s national culture rather than expecting the Finns to adapt to their new owner’s native culture. Core Values Individualism vs. Collectivism. While both the United States and Finl

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Oct 10, 2018
5 min

Case Study of a Failed M&A—The Role of Communication in Microsoft’s Acquisition of Nokia

Language differences impede communication. But communication issues arise from much more than just having employees who speak different languages. Microsoft discovered that not spending enough time to understand and adapt to differences in communication styles, mannerisms, and culture made bringing Nokia under its corporate umbrella difficult. Information Availability Openness Before being acquired by Microsoft, Nokia struggled to maintain open communication. According to sev

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