Thread: Nokia - Microsoft partnership (merged threads)
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cBeam is offline cBeam
2011-06-03 , 06:13
Posts: 139 | Thanked: 224 times | Joined on Nov 2007 @ San Francisco, CA
#1925
Originally Posted by 9000 View Post
My apology if the word 'assume' provoked you, but you really assumed too much in the reply. Say, you assumed the total market value equals to the total stock values in a single exchange market, aka NYSE.

But it's good that you bought up the term premium. The total market value is what used to determine the premium over present stock value. The term premium is actually a laymen term in acquisition for media annoucement, because all the public would care is how much their share and options would worth during the acqusition. However, only the actually amount dealt matters for the parties involved in the acquisition, rather than the current stock values, because if they chose to perform M&A, they wouldn't be interested in buying stock via free exchange channel, unless a huge amount of convertible stocks is involved in the deal.

Also, you assumed I read the 2007 report. Well, we can't discuss if you assumed too much okay?
Please re-read what you wrote and edit, there are statements in your post that make no sense at all and are plain wrong.

Please familiarize yourself with the term "outstanding shares", as you apparently think that market cap is share price times shares traded on one exchange (NYSE). This is clearly not the case, however you bring this up a second time. To reiterate: Market cap is share price times outstanding shares (3.71 billion shares according to Nokia's latest quarterly report).

I did not assume you read a 2007 report, I asked the question if you did, as it would have been the only plausible explanation to value Nokia at EUR 100 billion. So, was the report from 2007 or did you find a 2011 report valuing Nokia at EUR 100 billion?

To assign Nokia a current value of EUR 100 billion / $144 billion is not plausible. Neither market cap, break up value or liquidation value are anywhere close to this number.

It would be good if you could provide the issuer / name of the European financial report you refer to that - according to you - assigns an EUR 100 billion valuation to Nokia. I would like to get my hands on that report, if one exists at all.
 

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