Microsoft and Nokia’s ‘win-win’ deal
Microsoft announced today that it will purchase Nokia’s Devices and Services business; license Nokia’s patents; and license and use Nokia’s mapping services. Microsoft will pay €3.7 billion to purchase the Devices and Services business, and €1.65 billion to licence Nokia’s patents, for a total transaction of €5.44 billion in cash. The transaction is expected to close in the first quarter of 2014, when about 32,000 Nokia employees will transfer to Microsoft.
Nokia partnered with Microsoft back in February 2011, adopting the Windows Phone operating system which brought about the success of the Lumia smartphones. Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing.
“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,” said Stephen Elop, who following today’s announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services.
Outgoing Microsoft chief executive Steve Ballmer described the move as “a bold step into the future” and “win-win” for employees, shareholders and customers.
Read more from Microsoft here.
Image by Janitors.