Microsoft buys Nokia’s Devices and Services for $7.2B

Microsoft announced Monday that it will acquire Nokia’s devices and services business and license its patents and mapping services. The deal, which is estimated at approximately $7.2 billion U.S. dollars, will also appoint Nokia’s CEO Stephen Elop in a new role at Microsoft as the “Nokia Executive Vice President of Devices & Services.”

The deal is made up of EUR 3.79 billion for the devices and services business, and EUR 1.65 billion for the patent licensing deal. Both companies will benefit from the deal as Microsoft will gain a 10-year license to Nokia’s patents, and Nokia will gain rights from Microsoft to use its location-based patents. The deal will close early next year and will result in the transfer of 32,000 Nokia employees to Microsoft, including 18,300 employees involved in manufacturing.

The acquisition is a step up from the original partnership between the two companies and will allow them to compete in the mobile space, which has predominantly been run by Apple and Google. The combination of Nokia’s hardware and Microsoft’s software will better position them in the market and will also provide a much-needed competitive edge. Although the acquisition would potentially spell the end of Nokia, the company plans to continue as an independent entity providing network equipment and holding patents.

via Business 2 Community http://www.business2community.com/trends-news/microsoft-buys-nokias-devices-services-7-2b-0604183?utm_source=rss&utm_medium=rss&utm_campaign=microsoft-buys-nokias-devices-services-7-2b