Nokia acquires Trolltech: Will any open-source companies be left to change the world?

Another day and $150 million later, another open-source company has vanished into the bowels of the proprietary world, as Nokia on Monday announced its intention to buy open-source mobile company Trolltech. Tim O'Reilly may have been right: it may well be that most of the open-source commercial world is going to dissipate into the proprietary ether.

Who will change the world if the old world devours the new world?

For Nokia, the deal opens up the mobile landscape further:

The acquisition of Trolltech will enable Nokia to accelerate its cross-platform software strategy for mobile devices and desktop applications, and develop its Internet services business.

With Trolltech, Nokia and third-party developers will be able to develop applications that work in the Internet, across Nokia's device portfolio and on PCs. Nokia's software strategy for devices is based on cross-platform development environments, layers of software that run across operating systems, enabling the development of applications across the Nokia device range. Examples of current cross-platform layers are Web runtime, Flash, Java, and Open C.

Interesting days. Will there be any open-source companies left to acquire in 2008? Who will drive forward the changes to the software world if the old world keeps devouring the new?

Having said that, at the valuation for which Nokia picked up Trolltech, perhaps not many will be tempted to sell out. On this note, I'm trying to figure out what was sold. Trolltech's company valuation is $150 million (823 million Norweigan kroner) according to public records. Nokia is buying 66 percent of Trolltech for $150 million. This would give Nokia control of Trolltech, but I'm trying to figure out exactly what valuation this places on Trolltech.

Someone who is better at math or has more information, please help.

Regardless, it's interesting to note that Trolltech's valuation has roughly been cut in half over the past year, which makes this an opportune time for Nokia to buy.

[seo2seo]

If Nokia is paying $150m for two thirds, then the remaining third is worth $75m - a total valuation of $225m.

This, in turn, is a 50% markup on the quoted 'market value' - not quite YouTube, but fairly generous, assuming the market value was realistic!

[Matt Asay]

Yes, that seems about right. I just wasn't sure if there was something more to the calculation. I get lost in the European "turnover" and what-not as I was trying to figure out the multiple. I was a literature major, after all. :-)

[lmasanti]

As far as I understood the other news sites, they say that Nokia will pay $150 for the "full company". They need the agreement of 90% of shareholders and they "only" had the agreement of 66% of shareholders.
I think you read erroneously.

[lmasanti]

quote:
"Who will change the world if the old world devours the new world?"

As usual, in a couple of years, another bunch of people will think that they deserve more freedom and brake the common model...

[Matt Asay]

Just heard this from Trolltech's PR firm:

"The 66% is referring to the majority vote to accept the offer. The bid is for 100% of the company at 16 Norwegian Kroners per share. That adds up to just over $150,000,000 total."

[gianugo]

Matt,

let me answer with a quote from my ancestor Horace: "Graecia capta, ferum victorem coepit", that is "once Greece had been captured, it captured its wild conqueror". This flurry of Open Source skills inside the old guys can make them change their minds and adapt, much like the ancient Rome where you could barely tell the distinction between the Forum and Athen's Agora...

[Tihocan]

Why do you assume that just because Trolltech have been bought, the open-source community will miss out? Read: http://www.news.com/8301-13580_3-9859392-39.html?tag=bl