Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
The rumor that Nokia and Alcatel-Lucent would merge has come around many times in recent years, but the story hasn’t got any more attractive with repetition. But now it is real, with Nokia confirming reports that it is in “advanced discussions with respect to a potential full combination” with its French rival.
Nokia said any deal “would take the form of a public exchange offer by Nokia for Alcatel-Lucent”. The Finnish company currently has a market capitalisation of €29bn, and ALU’s is €11bn. Analysts estimate that ALU could be worth €4.50 a share, or a total of €12.7bn ($13.4bn).
Of course, a deal would give the enlarged Nokia the scale that may be required to stay ahead in the pressurized telecoms equipment market. But it will also create massive integration challenges which could distract the new entity for a couple of years during a time of critical transition among carriers, in particular towards software-defined networking (SDN).
In the early stages of that new phase, Nokia looks well positioned in terms of product offering and philosophy. There seemed to be a real strategic option to move gradually away from the rapidly commoditizing hardware businesses, relying on partners for those (as it has already done in some areas like microwave backhaul and WiFi), and become a leader in carrier software – a smaller company, but a profitable one focused on the key area of investment for service providers in the later years of the decade. Original post by CAROLINE GABRIEL