As per the latest update, the Redmond giant Microsoft(NASDAQ:MSFT) has announced that it has signed an agreement to acquire Nokia’s Devices and Services business, licensed patents and its mapping services.
As part of the deal, Nokia will sell its mobile phone unit to Microsoft for EUR5.44 billion ($7.17 billion) in cash, payable at closing. The Devices and Services business acquisition accounts for EUR3.79 billion of that, with the patent licensing deal making up the remaining EUR1.65 billion.
With this agreement, Nokia will also grant Microsoft a 10-year non-exclusive licence to its patents and will itself focus on network infrastructure and services. Besides this, Nokia’s CEO Stephen Elop will be stepping aside as Nokia President & CEO to fill a new role at Microsoft as “Nokia Executive Vice-President of Devices & Services”. He will be replaced by Nokia’s Chairman of the Board, Risto Siilasmaa.
Steve Ballmer, CEO, Microsoft, said, “It is 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.”
“After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders,” said Risto Siilasmaa…….See More