Microsoft buys out Nokia’s smartphone business
Microsoft announced last night that it will be purchasing Nokia’s Devices & Services business, which will allow them to license Nokia’s patents and mapping services.
The move is a great one for Microsoft, as it now has an established flagship phone maker for its Windows Phone platform.
According to the company, Microsoft will pay out approximately EURO 3.79 billion to purchase the Devices & Services business, while dishing out EUR 1.65 billion to license Nokia’s patents. The transaction is expected to get finalized during Q1 2014, assuming Nokia’s shareholders are on board, and frankly, they should be.
Nokia already develops flagship Windows Phone devices, such as its latest Lumia 1020, which boasts an incredible 41-megapixel camera.
“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. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said.
Much like Google’s acquisition of Motorola, which resulted in their first joint device, the Moto X, Microsoft will also continue to license its Windows Phone software to other manufacturers such as HTC.