Monday, July 16, 2012

The Creative Destruction of Nokia.

WSJ (June 15, 2012) on Nokia's remaining asset value:

BMO Capital Markets analyst Tim Long wrote that Nokia was grinding "its way toward irrelevancy" despite the new round of restructuring and management changes. As a result, he said BMO would take a new approach and value the company based on its cash and intellectual property. Mr. Long now values the company at less than $9 billion, which includes $6 billion of cash and $2.5 billion for its portfolio of patents and other intellectual property.

"We assume zero value for the device and Nokia Siemens Networks businesses," he wrote. "We see little hope for a turnaround from here even with a refined strategy."

Nokia's hardware and software combined seem to be worth nothing.  Only some electronic digits in the bank and some paper files on the shelves in the patent office can fetch some value on today's market.

tags: patents, notes, nokia, s-curve

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