Microsoft recently announced that it is buying Nokia’s devices and services business for $7.2 billion, where it will pay $5 billion for acquiring Nokia’s devices business, while $2.2 billion towards accessing its patents.
“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,” said Steve Ballmer, Microsoft chief executive officer.
“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 the announcement of the deal is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services.
The Lumia series by Nokia already runs Microsoft’s Windows operating system, the current takeover is seen as a strong move that is likely to give a good foothold to Microsoft in strengthening its windows8 mobile operating system that is facing a tough competition from android and iPhone across the world.
The deal is expected to close in the first quarter of 2014, will help Microsoft tread in the direction of becoming more of a devices company than restricting itself to services company only.