Tomahawk, WI 12/10/2013 (BasicsMedia) – Nokia Corporation (ADR) (NYSE:NOK) star is still shinning bright even with the close of this year. Since November 25th a total of 3 insiders have sold their shares. There has been intensive insider selling in as far as their tech stocks are concerned. Intensive insider selling is basically characterized by sales of stocks by more than three insiders within a given month. Stocks should not have been purchased by any one of the insiders in that month of intensive selling and at least two sellers should have decreased their holdings by over 10 percent.

Nokia Corporation (ADR) (NYSE:NOK) to work closely with  Microsoft Corporation (NASDAQ:MSFT)

Nokia Corporation (ADR) (NYSE:NOK) clearly understands the cut-throat market it is operating in and their move to partner with Microsoft Corporation (NASDAQ:MSFT) is testament to this. Nokia’s shareholders finally approved the sale of part of their smart phone division to Microsoft. Analysts predict that this partnership will be a win-win as both companies stand to gain a lot from each other’s competencies.

This is indeed a move in the right direction as Nokia will finally get rid of the handset divisions which have been guzzling its cash. If Nokia had made this strategic move sooner, say in the third quarter, the net sales collected from other divisions would have come to € 2.9 billion which is € 2.8 billion lower than what the group sales quarter was. However, their operating margins would have shot up to 11.5 percent from 3.8 percent, this is an increase of 7.7 percent and this makes it a timely and strategic deal.

How will Microsoft Corporation (NASDAQ:MSFT) gain?

Microsoft will still remain a force to reckon with as the new year approaches because it will be in control of Nokia’s devices unit such as sales, distribution, operations, manufacturing, design, services and marketing units. This package also comes with 32,000 employees from Nokia Corporation (ADR) (NYSE:NOK) and their talents. That’s not all, this deals also gives Microsoft privileges to use the Nokia brand and 8,500 Nokia patents for the next decade. This in turn means that Microsoft is set to gain patent licensing contracts from giants such as Google, IBM and Motorola Mobility.

Challenges prior to the partnership

The move to partner with Microsoft has not been without challenges, some of which have cost Nokia Corporation (ADR) (NYSE:NOK) a fortune but this did not deter their efforts to proceed with the partnership. Reports from Reuters indicated that Nokia was prepared to pay $369 million to the government of India to have their company assets unfrozen as this was a critical part of their deal with Microsoft.

Late September, they managed to get their assets unfrozen but the Income Tax Department maintained that Nokia still owed them a staggering $635.1 million. Luckily, the bank accounts were unfrozen but some buildings and facilities still remained unfrozen. A spokes man speaking for the company stated that they had the funds to pay and that this would not interfere with their deal with Microsoft. It has been a tough year for Nokia Corporation (ADR) (NYSE:NOK) but they have still managed to make major strides in the right direction.

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