Microsoft Clinched A Deal To Buy Nokia’s Cellphone Business
Nokia and Microsoft both have been the strong supporters of each other in the smartphone market. Unfortunately, the alliance of both the tech giants failed to compel users to buy their cellphones.
As a result, Nokia once the favorite among mobile users struggled to even capture user’s attention. Considering the downfall in the company’s popularity, Nokia decided to sell off its smartphone business to Microsoft rather than finding ways to tackle rivals.
Microsoft on Monday evening announced a deal with Nokia. The total amount of the deal is worth € 5.44 billion, which is currently worth $7.7 billion. The deal comprise of the acquisition of all the Nokia devices, patents and mapping service.
In the past, both the tech giants came together in 2011 with the intention of capturing the smartphone market. However, their initiatives failed. But this time the deal is serious and huge. The deal is not just about the acquisition of the business but also about getting key Nokia executives on Microsoft’s board. The CEO of the Nokia, Stephen Elop will be stepping aside as the Nokia CEO and President. He will be taking charge of the new role in Microsoft as “Nokia Executive Vice President of Devices and Services.”
The SEO of Microsoft Steve Ballmer considers this as a bold step and a win-win situation for employees, stakeholders and consumers. He further added that both the tech giants will work towards innovating and expanding their range of products to become consumers delight and acquire maximum mobile market. This deal is not just to challenge the leaders in the mobile market but also an investment of talent in critical areas such as supply chain and manufacturing management, hardware design and engineering, hardware sales, marketing and distribution.
The transaction is expected to be made in the first 3 months of 2014. The deal is a subject to approval from the stakeholders and the regulatory approvals.