Samsung to Buy Nokia? Rumor Lacks Rationale

by Holly Shoemaker

On Friday, June 8, 2012, shares of Nokia’s stock rose six percent amid rumors that Samsung Electronics may buy the declining Finnish mobile device company. Analysts will not confirm that Samsung will in fact acquire Nokia, and the companies have failed to issue any

statements.

Pure Speculation

This latest smartphone rumor lacks rationale as Samsung does not have to improve its market position. The company has already overtaken Nokia to become the world's largest device maker. Its Galaxy line of phones have also connected more with customers than the Lumia 700 and 900, which Nokia hoped would help the company once again compete in the North American market.

While it is clear Google will gain many patents through its acquisition of Motorola Mobility, some analysts suggests that any patents Samsung would gain from Nokia, would not equal the costs of integrating the two companies.

The rumor also fails to address the Microsoft aspect, seeing as Nokia partnered with Microsoft on its Lumia line of phones. At this point, Microsoft appears a more logical buyer, unless the company has put its hopes of generating more revenue with Barnes & Noble and the tablet market. Stay tuned...