Monday, April 7, 2014
Microsoft buying Nokia's phone business in a $7.2 billion bid for its mobile future.
purchased Nokia's devices and services unit, bringing the Lumia lineup under the Redmond roof. The move unites Windows Phone 8 with its biggest hardware supporter, giving the company the integrated mobile offering it's been looking for with Surface and other devices.
When the deal closes in the first quarter of 2014, Microsoft will pay €3.79 billion for Nokia's business, plus another €1.65 billion for its portfolio of patents. (The €5.44-billion total is considerably less than Microsoft paid for Skype in 2011.) 32,000 people are expected to transfer from Nokia to Microsoft, including 18,300 that are "directly involved in manufacturing." The purchase comes on the heels of what appeared to be a failed acquisition in June, at which point it seemed conversations had broken off entirely. Now the two come together, in what outgoing Microsoft CEO Steve Ballmer called "a bold step into the future." In an email, Ballmer cited the Lumia 1020 as an example of what the companies could do together, but said the phone hadn't caused the marketshare bump it deserved. "Now is the time to build on this momentum and accelerate our share and profits in phones," he wrote.