Microsoft-Nokia Deal a Dramatic Departure: Johnson

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Sept. 3 (Bloomberg) -- Bloomberg West Editor-At-Large Cory Johnson breaks down Microsoft's $7.2 billion deal to purchase Nokia's handset unit and what it means for both the companies and the U.S. wireless market. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Your impression of microsoft scooping up the cell phones business to try to get in the game.

Struggling businesses when it comes to the market.

The handset business for nokia has been a mass of cash- burning problem for them that was a great strength for some time and became the focus of the big company.

They are pretty excited to get rid of the problem.

What can microsoft make of that?

It is an open question.

Microsoft has not been a total failure.

The ex boss has been an enormous -- xbox has been an enormous success.

They have made a decision that the old way of doing things, the high-margin software , that was the old model.

Really high-margin.

Very successful for them.

I just interviewed steve ballmer.

If you would have done a better job to be honest.

Levy asked you a direct question, it does he ever get out of talking points?

He is the worst interview an all time.

I was glad you had to do it instead of me.

It is like playing football against the colts.

You cannot talk to him.

When you look at the memos coming out of the company, they are penetrable.

Impossible to understand.

No declarative sentences.

That is a problem for the company.

When you see jamie dimon on t become he is a lot like that in meetings and conference call.

Steve ballmer is leaving for the next guy to run the shop.

Some form of agglomeration.

Where does the phone actually fit in?

I cannot figure that out.

I think they look at it as a series of capabilities, not a particular phone right now.

I think it is fair to recognize what we see in the smart phone business, the ipad itself or tablet business did not exist three years ago.

It was ereaders.

What we're looking at is very much early days.

The knee -- the nokia phone, they are really well-liked.

They are really cool phones that work well and have tremendous functionality.

They have not have the take up on the lam -- claim that there are not as many apps.

I do not think the game is over in terms of winning customers and the business.

This is a dramatic departure from the thing microsoft has done well, which is a high- margin operating systems business.

While everyone wants to compete in the smartphone wars, cristina alesci, the wireless carriers are sitting pretty.

Here comes verizon doubling down.

A lot of this has to do with the fact that the u.s. market has been booming.

Absolutely.

We talked about this last time around.

We had a bidding war for sprint a couple of months ago.

The fact that they're cutting down on the most profitable business.

This has 50% profit margins.

That is an amazing business.

What they could see ahead is

This text has been automatically generated. It may not be 100% accurate.

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