Breaking: Microsoft is buying Nokia's Devices and Services business

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Ignotum666

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Microsoft buys Nokia's Devices and Services Unit, unites Windows Phone 8 and its hardware maker

One of the most enticing "what-ifs" of recent years has come true: Microsoft has purchased Nokia's Devices and Services unit, it announced today. It unites Windows Phone 8 with its biggest hardware supporter, and gives the company an integrated solution across hardware and software. When the deal closes in the first quarter of 2014, Microsoft will pay 3.79 billion Euros for Nokia's business, plus another 1.65 billion Euros for its portfolio of patents. 32,000 people are expected to transfer from Nokia to MIcrosoft, including 18,300 that are "directly involved in manufacturing."

The purchase comes on the heels of what appeared to be a failed purchase in June, though at that point it seemed as if conversations had broken off entirely. Now the two come together, in what outgoing Microsoft CEO Steve Ballmer called "a bold step into the future." In an email, Ballmer cited the Lumia 1020 as an example of what the companies could do together, but said the phone hadn't caused the marketshare bump it deserved. "Now is the time to build on this momentum and accelerate our share and profits in phones," he wrote.

Its device business now gone, Nokia's plan is to focus, on three core technologies: NSN (its network infrastructure) HERE (its maps and location-based services); and Advanced Technologies (a licensing and development arms. Microsoft will pay Nokia for a four-year license of the HERE services, bringing the newly smaller company more revenue and stability than it had previously. But it also makes Nokia a much smaller company.

As part of the agreement, Nokia CEO Stephen Elop is stepping aside; he's now leading Microsoft's Devices team. That puts him in an odd position with Julie Larson-Green, who Ballmer said will be joining his team, but will also be responsible for other hardware like Surface and the Xbox One. The exact scope of Elop's role isn't exactly clear, and with a soon-to-be-vacant CEO seat we expect plenty of rumors to fly as the acquisition closes. Risto Siilasmaa was named Nokia's Interim CEO ? he was previously chairman of the company's Board of Directors.

Source: The Verge
 

MDboyz

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I'm sure most of us in US caught by surprised, since it was the holiday. We all knew this would happen, but not expect as this soon. I'm so exciting to look forward to the future of Nokia/MS phones.

The news has been out for 32 minutes and there's *still* no article on the front page?! Slackers! :p
 
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