Technology

Satya Nadella was not in favor of Microsoft’s ridiculous $7.6 billion Nokia acquisition

Turns out Satya Nadella did not want Microsoft to acquire Nokia and considered it a $7.6 billion mistake. He talks about the big mishap and other interesting personal and professional stories in his new book ‘Hit Refresh’.

When Bill Gates stepped down as the CEO of Microsoft, his role was filled by Steve Ballmer who pitched the idea that Microsoft should dive into the mobile business by acquiring Nokia. Satya Nadella, then a top Microsoft executive, advised Ballmer against the decision and even Bill Gates tried to talk Ballmer out of this decision. When a vote was conducted, Nadalla voted “no”.

In his book he states,

“I voted no. I did not get why the world needed the third ecosystem in phones, unless we changed the rules … But it was too late to regain the ground we had lost. We were chasing our competitors’ taillights.”

This is the first time he has publicly acknowledged his disapproval of the 2013 Nokia acquisition.

However, when the $7.6 billion deal was eventually finalized, Steve Ballmer had resigned and Satya Nadella was left to clean the mess. Under Nadella’s leadership, Microsoft released one new flagship Windows phone called the Lumia 950 but soon after that they started to wind up the mobile business which had cost them millions of dollars and also resulted in massive employee layoffs, something which Nadella regrets the most.

“In retrospect, what I regret most is the impact these layoffs had on very talented, passionate people in our phone division,” Nadella writes in his memoir.

In 2016, Microsoft sold its mobile business to HMD Global for just $350 million, who is now trying to revive Nokia.

With Nadella in the CEO position, Microsoft has focused more on building apps and services and its cloud business. However, a quote from Nadella in the book does hint that Microsoft could dive into the mobile business if it has something unique to offer.

“Buying a company with weak market share is always risky. We should only be in the phone business when we have something that is really differentiated,” he says in the book.

Who knows, we may see a ‘Microsoft Surface Phone’ soon.

[Image Source International Business Times]

Sponsored
Maryam Dodhy

I love bringing to light stories of extraordinary people working in Pakistan's tech and startup industry. You can reach out to me through maryamdodhy@techjuice.pk.

Leave a Comment
Share
Published by
Maryam Dodhy

Recent Posts

WhatsApp Beta Partners with Google for Innovative Image Search Feature

When it comes to Android messaging apps, WhatsApp stands out as one of the best.…

28 mins ago

Farrukh Sabzwari Appointed as CEO of PSX, Set to Serve for Three Years

Farrukh H. Sabzwari has been appointed Chief Executive Officer (CEO) of Pakistan Stock Exchange Company…

1 hour ago

250 Government Schools to Be Run by Private Sector

RAWALPINDI: The chairman of the Punjab Education Foundation, Malik Shoaib Awan, stated on Monday that…

2 hours ago

Pakistan Launches First National Sex Offenders Register to Combat Sexual Violence

Pakistan has taken a significant step towards addressing sexual violence and abuse with the introduction…

3 hours ago

SBP Chief Reports October Remittances Exceed $3 Billion

KARACHI: The State Bank of Pakistan (SBP) is anticipating $500 million from the Asian Development…

3 hours ago

Sindh Assembly Reveals 28,500 Govt Employees’ Spouses as Illegal BISP Beneficiaries

The Sindh Assembly was informed that over 28,500 employees of the provincial government were unlawfully…

4 hours ago