Samsung has refuted claims that it is planning to acquire Nokia Corporation (NYSE:NOK) by referring to the reports as speculative and groundless, Reuters reported.
Sometime last week, several reports had linked Samsung with Nokia suggesting that the former is planning to acquire the latter in a deal worth billions of dollars. Such was the intensity of the reports that by close of market activity last week, Nokia’s stock surged up by 6%.
In our previous publication, we cited various pointers that engineered the rumor, which spread like wildfire within a couple of days. Such pointers include the high debt reflected on Nokia’s balance sheet along with poor performance in recent times.
However, we also highlighted the unlikeliness of the deal, owing to the patents held by Nokia, which would prove cumbersome for Samsung in its efforts to land the deal. Additionally, Samsung would tentatively have to break up with Google Inc (NASDAQ:GOOG) in their current partnership, hence making things more complex.
Today, Samsung has confirmed that it is not interested in acquiring Nokia, just as we had predicted. Soon after this breaking news from the electronics giant based in South Korea, Nokia’s Stock plunged down by 2% to reflect the declined morale from investors, to own the stock.
Not long ago, Nokia was the world’s largest phone maker, title it has since lost to Samsung. According to Bloomberg, the Finland based company is facing problems in its lost market share with buyers opting for iPhones and Samsung Smart phones, a seismic wave that has seen its shares fall by an overwhelming 46%.
In other news, TNW’s (The Next Web) Robin Wauters is quoted saying that the deal would have brought more harm to the mobile phone company than it is in its current status.
He cited issues to do with worldwide regulations as well as the current partnership with Google in using its Android O.S (Operating System) as a major huddle, saying that the deal wouldn’t make sense.
About a year ago, Samsung had been linked with the same deal to acquire Nokia, something that did not materialize.