Microsoft buying Nokia’s devices and services unit


Stephen Elop CEO of Nokia, left, with CEO of Microsoft Steve Ballmer, speaking in London, as he announces the strategic partnership with Microsoft. AP

REDMOND, Washington—Microsoft Corp. is buying Nokia Corp.’s devices and services business, and getting access to the company’s patents, for a total of 5.44 billion euros ($7.2 billion) in an effort to expand its share of the smartphone market, the companies announced late Monday.

Microsoft will pay 3.79 billion euros ($5 billion) for the Nokia unit that makes mobile phones, including its line of Lumia smartphones that run Windows Phone software.

Microsoft is also paying 1.65 billion euros ($2.2 billion) for a 10-year license to use Nokia’s patents, with the option to extend it indefinitely.

“We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together,” Microsoft CEO Steve Ballmer said in a memo to employees. “We are receiving incredible talent, technology and IP (intellectual property).”

Microsoft said it is acquiring Nokia’s Asha brand of low to mid-level smartphones and will license the Nokia brand for current Nokia mobile products.

“This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone,” the companies said in a joint statement.

Redmond, Washington-based Microsoft said it will draw from its overseas cash resources to fund the transaction. When the deal closes in early 2014, about 32,000 Nokia employees will transfer to Microsoft, the companies said.

Nokia, based in Espoo, Finland, said Stephen Elop will step aside as president and CEO to become executive vice president of Nokia devices and services. Chairman Risto Siilasmaa will stay in his current role and assume the duties of interim CEO.

Elop is expected to join Microsoft at the close of the transaction, along with several Nokia vice presidents.

Nokia plans to hold a news conference in Finland on Tuesday morning to discuss the deal.

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  • RyanE

    If Nokia only adopted Android OS, it could have been the No. 1 smartphone brand today.

  • Aisa Pangdan

    Microsoft has very high perseverance.. They
    didn’t build the first OS yet they have the most popular OS. They didn’t build
    the first browser yet has the most used browser now. They were very late into
    gaming consoles, yet beat sony and nintendo and became the leader. Of course
    that is not the case in Phones yet… but lets wait and see ..

  • Bulagas

    Elop (former microsoft) was sent to destroy Nokia and let microsoft buy it dirt cheap….. now Elop will become Microsoft CEO and Nokia will become a memory… what a joke poor Finns

  • David Van Cleef

    First thing on the product chopping block will be inexpensive non-smartphones. Low margin.

  • Mux

    Microsoft buying Nokia. They will call their new brand Micro-phone. :)

  • pubringjuandelacruz

    nice buy microsoft!

  • Fulpol

    Steve Jobs is long dead.. but Microsoft can’t still land on the first base…

    • pubringjuandelacruz

      yup… steve is gone and so as his visions… the company which he built will turn into wilt after a decade. :)

    • WeAry_Bat

      that’s right…not a base on mobile….one decade already since they started

  • Bulagas

    stupid microsoft

    • Don Dee

      Ano ang operating system ng computer mo?

      • Bulagas

        ubuntu…. utot mu

      • Don Dee

        Alright fair enough. Kung Mac kasi, hehehe. Linux ftw.

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