Microsoft to purchase Nokia’s phone business

Just days after the announcement that Microsoft’s CEO Steve Ballmer will step down within a year, Microsoft has announced it will purchase the smartphone business of the Finnish Nokia along with the company’s services in this field.

The deal, which is valued at USD 7.1 billion, also includes licensing of Nokia’s patents and using Nokia’s mapping services. The transaction is expected to close in Q1 2014 but has to be approved first by Nokia’s shareholders, regulatory agencies and there are other closing conditions.

“It is a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution,” said Steve Ballmer, chief executive officer of Microsoft.

“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter. After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space,” said Risto Siilasmaa, chairman of the Nokia board of directors and, following today’s announcement, Nokia interim CEO.

Microsoft’s strategy is rather obvious – the company wants to compete in the mobile market much more aggressively against giants like Apple, Google and Samsung, while once the deal goes through Nokia will focus on three established businesses in the fields of network infrastructure and services, mapping and location and technology development and licensing.


Source: Microsoft

Related posts

The First Forty Gigabit Port Terabit Box Switch By Hitachi Cable

Development of the first forty gigabit port equipments in the world, the terabit box switch Apresia 15000-64XL-PSR and the Apresia 15000-32XL-PSR of the APRESIA series of Ethernet switches, were announced today by Hitachi Cable. Sales of these new switches will start next year, at the end of...

Razer is The Newest Member of The PC Gaming Alliance Board

The non-profit consortium which was created to promote the PC Gaming Industry and be the "authoritative voice" of the PC Gaming around the world, "The PC Gaming Alliance", has announced that Arxan Technologies, Corsair, Logitech and Razer have joined as its newest members. By joining the PC...

Sony Rollable OTFT-driven OLED Display

Sony reveals today another gadget of the feature, a super-flexible 80 μm-thick 4.1-inch 121 ppi OTFT color OLED display, which is flexible enough to be wrapped around a thin cylinder. The display use Sony's organic thin film transitors (OTFT) with an original organic semiconductor material (a...

Leave a comment