Microsoft to buy Nokia Rim to boost smartphone market position

Lead: Foreign media in Tuesday published an analysis of the article that, given rim and Nokia's ailing, Microsoft should "Rob", through a big purchase to enhance its position in the smartphone market. The following is the full text of the article: when rim and Nokia are in trouble, how long will Microsoft sit still? The problem has become increasingly urgent as the two former smartphone leaders have been depressed in the stock market.　　Microsoft may eventually have to take some action, given its ample cash overseas to buy two companies and the risk of a rebound from rivals. The following data are hard to ignore. Microsoft recently disclosed that its overseas cash flows amounted to $42 billion trillion, while overseas acquisitions were largely denominated in pre-tax dollars – one reason why Microsoft could easily buy Skype at a price close to 10 times times last year's revenue.　　Microsoft has been successful in its strategic partnership with Nokia in the software sector, but not so long ago, it was probably unthinkable. Meanwhile, in response to the threat from Apple and Google, RIM has been closer to Microsoft, agreeing to integrate Bing and other Microsoft services into the BlackBerry's operating system. As Microsoft seeks to become the third-largest smartphone software vendor, the collaboration is helping to achieve this goal. But how long can rivals leave Microsoft to determine if Windows Phone 7 is a mainstream platform?　　Things are getting more pressing: the smartphone market is likely to show two big patterns. Microsoft strategists must have considered these issues carefully. When markets are in turmoil like the present, people often assume that companies will suffer heavy losses. If the merger followed, it would be safer to sit in the driver's seat. The ailing rim is less costly, of course, and Microsoft has to bear a high premium, but it can afford to do so, and how many will refuse to face such an offer that has witnessed Yahoo's encounter?　　Despite the difficulties, Rim still occupies a prominent position in Microsoft's core business market. It is more difficult for Microsoft to make a takeover deal with Nokia, especially since the Finnish handset maker has been defeated in the fierce price of emerging markets. But in the high-end business, Nokia and Microsoft have a common place.　　In keeping with Microsoft's own positioning, the company seeks to become a more durable, seamless Android replacement, so delving into the hardware business is significant. Stephen Elop, the company's CEO, rushed to Elop in response to rumours that Nokia was talking about selling handsets to Microsoft, suggesting how much pressure he is currently under.　　If Elop is forced to consider more radical strategic options, the above scenario is likely to become a reality. But, according to Microsoft's usual style, everything is very variable. What role does Microsoft want to play in this acquisition game? This may depend on interests, opportunities and strategic rationality, but this adventure is completely different from the past, perhaps with great risk. (Xuan Chen)