Microsoft will acquire Nokia’s Devices and Services business for 5.44 billion Euros.
Microsoft has just announced that they are acquiring Nokia‘s Devices and Services divisions in a move that will see Microsoft in control of Nokia’s smart phone properties. This is not a complete takeover, as Nokia will still be its own entity with its own patent portfolio. However, Microsoft will be granted a “10-year license” to Nokia’s patents.
Microsoft will pay $3.79 billion euros on the Devices and Services business and $1.65 to license patents. 32,000 staff will move from Nokia to Microsoft, with Nokia CEO Stephen Elop moving to Microsoft as executive VP of Devices and Services.
According to Microsoft CEO Steve Ballmer, Nokia Windows Phones “are the fastest-growing phones in the smartphone market.”
This is a smart acquisition for Microsoft, and a good deal for both companies. We are receiving incredible talent, technology and IP. We’ve all seen the amazing work that Nokia and Microsoft have done together.
“Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we expect a smooth transition and great execution.”
It’s worth mentioning that Steve Ballmer will retire as Microsoft CEO within the next 12 months.