Microsoft buys Nokia’s smartphone handset business

Microsoft buys Nokia's smartphone handset business

Microsoft buys Nokia’s smartphone handset business

Microsoft announced Monday night that it will acquire Nokia’s devices and services division. Everybody saw this news coming! It was 2011 when Nokia chose to partner with Microsoft to power up their Lumia handset devices with Windows Phone because they feared that Samsung would dominate Android. Since that partnership, rumors about Microsoft’s acquisition of Nokia will likely happen — and it is happening now. Nokia on their part is the only manufacturer that fully relies on Windows Phone unlike Samsung and HTC. Nokia also accounted for a whopping 81% of all Windows devices shipped last quarter based on Kantar Worldpanel. On Microsoft’s side, they are transitioning from software to a “devices and services” company. This buyout deal will be beneficial for both companies in many ways.

Microsoft will pay 3.70 billion Euro for Nokia’s devices business ($5 billion U.S.). Microsoft will also pay an additional 1.65 billion Euro ($2.2 billion U.S.) for the rights to Nokia’s patents. All together, the deal will cost Microsoft about $7 billion U.S.

Microsoft will also take on about 32,000 Nokia employees. Nokia’s CEO Stephen Elop will transfer to Microsoft too. (Elop used to work at Microsoft before becoming the Nokia CEO.)

Nokia will be hosting a live press conference at 10am CEST (4pm Manila time).

Press Release from Microsoft.
Joint Press Release from Steve Ballmer and Stephen Elop.

What do you of this buyout deal?

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