Canadian cuckoo rips apart Finland's nest egg
Growing up in New Zealand it was a piece of received wisdom that all we needed was one Nokia. The Government's economic strategy at the time was invested in finding and nurturing that one company that could rain the wealth down on us like Nokia did for Finland.
For that reason I have always watched Nokia. Watching them fall prey to Microsoft has been painful.
It only took Stephen Elop 3 years (he was appointed September 2010 when Nokia was worth $37 billion. The company is being acquired by Microsoft in September 2013 for $7.2 billion) to rip the company apart and reconfigure it as the new device manufacturing arm of his previous employer.
If you looked at him as the CEO of a proud independent company none of his actions made sense. Why would you exclusively switch to Windows Phone without gaining any concessions from Microsoft? Why would you write and release a memo that destroyed sales of all your existing products without having anything in the pipeline to replace them with?
You would not. Not unless you had a major conflict of interest. It will be interesting to see what reward Elop gets for his last three years as an agent out in the field. Is he going to be the next CEO of Microsoft? Will he get a chunk of the $30 billion difference that was Nokia's starting value vs it's current purchase price? UPDATE: Elop only got $25 million, for now.
So, you have to feel sorry for Finland. They had a Nokia. Now they have a weak promise by Microsoft to keep them on as a research and development facility. They just got taken for a $30 billion ride by a corporation that showed that it is still one of the most savage competitors in the game.