Microsoft has announced that it will by Nokia’s device unit and mobile phone unit in a deal which is worth $7.2 billion, the deal is made up of 3.79 billion Euros for Nokia’s device unit and 1.65 billion Euros for Nokia’s patent portfolio.
Nokia’s CEO Stephen Elop has now stepped down and he will join Microsoft when the deal is completed. The deal is expected to be finalized by the end of the first quarter in 2014.
Subject to the closing of the transaction, Microsoft will acquire substantially all of Nokia’s Devices & Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and related support functions. At closing, approximately 32,000 people are expected to transfer to Microsoft, including approximately 4,700 people in Finland. Nokia’s CTO (Chief Technology Office) organization and patent portfolio will remain within the Nokia Group. The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50%, of Nokia’s net sales for the full year 2012.
There had been rumors earlier this year that Microsoft were looking to buy Nokia, and now the two companies have come to an agreement that will see the deal go through early next year.
It will be interesting to see what Microsoft does with Nokia’s mobile phone unit, and whether they are able to use it to increase the poularity of Windows phone.
Source The Verge