Microsoft Corp on Tuesday said it will buy Nokia’s mobile phone business for 5.44 billion euros ($7.2 billion).
In a statement, Microsoft CEO Steve Ballmer says the deal will bring Nokia’s capability and talent in hardware design, engineering, manufacturing, sales, marketing and distribution to Microsoft.
The companies say that when the deal closes in early 2014, about 32,000 Nokia employees are expected to transfer to Microsoft, including approximately 4,700 people in Finland.
The operations affected by the transfer generated approximately 14.9 billion euros in 2012, or almost 50 per cent of Nokia’s net sales, the company said.
Of the total purchase price of 5.44 billion euros, 3.79 billion relates to the purchase of Nokia’s Devices & Services business, and 1.65 billion relates to the mutual patent agreement and future option.
Personally, I love Nokia. I use Nokia Lumia 920, which has WP8. But the thing is Nokia also has other ‘dumb’ phones, what would happen to those? there is still a lot of market for it around the globe. For example the new Nokia 515, which just came out is not a smart phone. Running on series S40, it doesn’t even have a full HTML internet explorer. What will happen to these smartphones?
“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,” Ballmer said in a statement announcing the buy, which will see about 32,000 employees move from Nokia to Microsoft.