Nokia agrees to buy Alcatel-Lucent for $16.6 billion


On Wednesday, Finnish telecom heavyweight Nokia and France's Alcatel-Lucent announced plans to merge, with Nokia buying out its smaller rival in an all-stock deal worth about $16.6 billion. After the deal closes next year, Nokia shareholders will hold 66.5 percent of the company's stock, while Alcatel-Lucent shareholders hold the remaining 33.5 percent.
The combined company will be a telecom equipment and software powerhouse with 35 percent of the wireless gear market, according to Bernstein Research, competing against Sweden's Ericsson (40 percent) and China's low-cost rival Huawei (20 percent). Nokia, once the dominant smartphone maker, sold off its handset business to Microsoft last year and now mostly makes hardware and software that runs the wireless networks of major carriers like AT&T and Verizon. Alcatel-Lucent also has a strong foothold in the router business. Nokia says it won't cut jobs in France more than those already put on the chopping block by Alcatel.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Film reviews: The Fantastic Four: First Steps and Cloud
Feature A space-age superhero team mounts a redo and Reality catches up with an online reseller
-
'Grief and condolences are not enough'
Instant Opinion Opinion, comment and editorials of the day
-
Senate confirms Trump loyalist Bove to top court
Speed Read The president's former criminal defense lawyer was narrowly approved to earn a lifetime seat
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
A potential railway megamerger raises monopoly questions
The Explainer Union Pacific and Norfolk Southern would create the country's largest railway operator
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate