Interesting blog post arguing that Microsoft's acquisition of Nokia is symptomatic of a company pulling in two opposite, competing directions:
http://stratechery.com/2013/another-nokia-explanation-the-same-conclusion/
I don't think either of the scenarios they present are the most likely cases.
ValueAct owns <1% of MS stock, MS could easily have ignored their whining.
Ballmer's explanation for leaving (end of cycle now, instead of mid-cycle when he originally planned to retire) makes perfect sense - Sinofsky's leaving seemed more suspect. (Most plausible explanation I heard for that was that he didn't like where he fit in to MS's re-org - ie. not as CEO).
Nokia wasn't close to going bankrupt, you can look at their financials yourself. I suspect they looked at the longer-term numbers and realized it wasn't going to work.
I'm doubtful Nokia would have gone Android, this would have lost them hundreds of millions in platform payments from MS, and nobody who isn't Samsung is making any money on Android.
Google is losing hundreds of millions making Android phones with Motorola.
I don't think Google destroying the value of a licensed OS is particularly relevant - MS is making chump change from WP licenses anyway, they should just make it free and worry about monetization (or simply justify from a ecosystem/services driver standpoint) if the lack of license fees helps OEMs drive adoption.
Services and devices being opposed, and for MS in particular is just silly - Apple and Google are both services and devices companies, the conflicts of interests are pretty minor compared to making 99% of your money from advertising vs. everything else in your company.
I wonder will that be another one of those doomed mergers because the 2 companies really are not compatible?
Well it's not a merger, it's simply an acquisition. I can't imagine it will work out much worse than the billions they've sunk into acquiring search/advertising companies, only to promptly fail them. (Massive, LinkExchange, Fast, aQuantive)
The light reading I have done on this makes me think it might be more about inroads in foreign emerging smartphone markets rather than the US and Europe, which are pretty sown up.
I don't think the acquisition particularly affects market targets. MS is generally more focused on the US than Nokia was. Nokia has been driving low-cost/spec phones since they started the partnership two years ago.