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Microsoft Buys Nokia’s Handset Division For $7.17 Billion

Microsoft and Nokia have been working together ever since Windows Phone platform was launched. Nokia has been the primary brand supporting the platform. Now, Microsoft has acquired Nokia’s handset division in a deal that rakes in $7.17 billion.


Nokia acquisition

From once being the leading mobile vendor in the world, Nokia’s fate has taken a huge hit over the last few years. The company has spiralled into decline, desperately trying to rely on it’s sales volume while the world moved on to the smartphone revolution.

The decision to work on Windows Phone handsets is seen by many as a move that preempted Nokia’s end. However, others have termed it a strategy that has turned Nokia away from innovation and focused on a single platform. With this fresh acquisition, questions have been raised as to what becomes of the rest of Nokia. According to the company, the rest of it will continue to provide a range of other services. But in essence, the rest of Nokia is no longer relevant in the world of mobile company.

As part of the deal with Microsoft, Nokia has sold, “substantially all of its Devices & Services business and license its patents to Microsoft.” The overall value of the acquisition is estimated to be $7.17 billion and it is expected that it will be finalized by the first quarter of 2014.

Microsoft’s current CEO, Steve Ballmer, is stepping down in a few days and Nokia’s current CEO, Stephen Elop, is being touted as a potential candidate for the post. As part of the acquisition, 32,000 Nokia employees have been transfered to Microsoft, including Elop.

Courtesy: Gizmag

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