Today marks the anniversary of the 2013 purchase of the Nokia phone unit, valued at 5.4 billion euros (over 7 billion US dollars). It was an important moment in cellular history as Nokia pioneered the industry and the acquisition gave Microsoft access to a host of related patents and expertise.
Unfortunately, history shows us that the two companies have not been able to make a dent in Android and iOS in the long run. Microsoft would withdraw from the smartphone sector in 2017 and only return with the Android-based Surface Duo in 2020.
Nonetheless, the Microsoft-Nokia partnership and the eventual deal led to a rather insane conspiracy theory emerging.
A Microsoft mole at Nokia?
David Imel / Android Authority
Yes, one crazy conspiracy theory has it that Nokia CEO Stephen Elop, who took the reins as CEO in 2010, was a mole for Microsoft. This conspiracy theory actually came about long before Microsoft bought Nokia.
A participant in the MWC 2011 event hosted by Microsoft and Nokia (where the two announced their first partnership) asked Elop himself if he was a Trojan horse. The Nokia CEO denied this, saying that the entire executive team was part of the decision to choose Microsoft.
Sure, an outsider asking this question may not deserve your attention, but the conspiracy theory gained momentum when the topic was discussed by several Nokia employees in 2011.
Former Microsoft employee Stephen Elop was Nokia CEO before leading the € 5.4 billion deal.
the Global mail first reported on these claims in October 2011 (more than eight months after Nokia and Microsoft partnered for Windows Phone) in an article entitled “Ask Nokia Employees, Is the CEO a Microsoft Mole?”
“I think Microsoft will wait until the stock price of Nokia falls a little, and then buy up” at the time, said a Nokia employees. This was done, of course, 2013.
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“I am very suspicious,” said another Nokia employee at the point of sale. “If he wants good for the company, why is he trying to destroy it and drop the share price? There are many conspiracy theories here. “
“Sometimes it is difficult to say where his loyalty lies,” a former employee was quoted as saying at the time.
These comments came months after Elop posted an infamous internal memo saying Nokia was on “a burning platform.” It didn’t help that Elop had come straight to Nokia from Microsoft, where he led the business unit, which also included Microsoft Office.
To be fair, Nokia was at a crossroads during this period. His Symbian mobile operating system was a broken, aging mess that wasn’t designed for touch from the start. The company also worked hard on its ambitious in-house MeeGo platform, but it was delayed several times before the first MeeGo phone finally hit the market in late 2011.
Elop was “not a Trojan horse”
Robert Triggs / Android Authority
But is there anything to this conspiracy theory? Well, aside from Elop’s answer mentioned above, perhaps the best answer to this question can be found in a book written by two Finnish journalists in 2014. During Operation Elop by Pekka Nykänen and Merina Salminen, many interviews were conducted with people who had “first hand” knowledge ”of what was happening at Nokia.
“After more than a hundred interviews, we are absolutely convinced of one thing: The talk about a conspiracy behind Elop is completely unfounded,” the authors write. They continued:
Elop was not a Trojan horse. Microsoft didn’t smuggle it to Nokia to later buy Nokia’s phone store at a low price. Our interviews gave no evidence – none at all – to suggest that this was even possible.
Journalists also noted that the conspiracy theory was “absurd” because Elop was selected by the Nokia board of directors. In addition, several key Microsoft figures, such as Bill Gates and future CEO Satya Nadella, have reportedly expressed their strong opposition to Microsoft CEO Steve Ballmer for even buying Nokia.
However, the book suggests that Elop is “in many ways one of the worst CEOs in the world, if not the worst”. The authors note that Nokia was valued at € 29.5 billion the day before Elop launched, and € 11.1 billion when the Microsoft acquisition was announced. They also criticized Elop’s single-minded approach rather than offering a multi-pronged approach to smartphones like we’ve seen with Samsung (with Android, Windows Phone, and Bada devices).
A book describing Nokia under Stephen Elop claims he was more of a bad CEO than a mole for Microsoft.
Even so, some just refuse to let go of the conspiracy. After Microsoft sold the Nokia trademark rights to HMD Global, HMD eventually worked with Elop after the Canadian moved to Australian airline Telstra in 2016. While working for another publication in 2017, I met with then HMD CEO Arto Nummela and asked for his thoughts on conspiracy theory. “I can’t comment on that. You have to ask Stephen Elop, ”grinned Nummela.
This is the nineteenth entry in our Did You Know series, where we dive into the history books of Android and consumer technology to uncover important and interesting facts or events that have been forgotten over time. What would you like us to cover next? Let us know in the comments.
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