One of the most enticing "what-ifs" of recent years has come true:
Microsoft has purchased Nokia's Devices and Services unit, it announced today. It unites Windows Phone 8 with its biggest hardware supporter, and gives the company an integrated solution across hardware and software.
Microsoft paid 3.79 billion Euros for Nokia's business, plus another 1.65 billion Euros for its portfolio of patents.
The purchase comes on the heels of what appeared to be a failed purchase in June, though at that point it seemed as if conversations had broken off entirely. Now the two come together, in what outgoing Microsoft CEO called "a bold step into the future."
As part of the agreement, Nokia CEO Stephen Elop is stepping aside; he's now Nokia Executive Vice President of Devices & Services. Risto Siilasmaa was named Nokia's Interim CEO — he was previously chairman of the company's Board of Directors.
Its device business now gone,
Nokia's plan is to focus, on three core technologies: NSN (its network infrastructure) HERE (its maps and location-based services); and Advanced Technologies (a licensing and development arms. Microsoft will pay Nokia for a four-year license of the HERE services, bringing the newly smaller company more revenue and stability than it had previously. But it also makes Nokia a much smaller company.
As part of the agreement, Nokia CEO Stephen Elop is stepping aside; he's now Nokia Executive Vice President of Devices & Services. Risto Siilasmaa was named Nokia's Interim CEO — he was previously chairman of the company's Board of Directors.
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Statement:
Microsoft to acquire Nokia Devices & Services, accelerating the Windows ecosystem
Nokia and Microsoft have always dreamed big – we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we’ve come a long way toward realizing those dreams.
Today marks a moment of reinvention.
Nokia has an identity spanning 150 years of heritage, innovation, excellence, and change which began and will continue in Finland and around the world. From humble beginnings as a paper mill factory, to manufacturing rubber boots and car tires, and then to mobile phones, reinvention is in Nokia’s blood.
Nokia will now write its next chapter, focused on enabling mobility through its leadership in networking, mapping & location, and advanced technologies.
For Microsoft as well, today is a bold step into the future, a huge leap forward on our journey of creating a family of devices and services that delight people and empower businesses of all sizes.
Our partnership over the past two and a half years, which combined our respective strengths to build a new global mobile ecosystem, has created incredible results: award-winning phones and amazing services that have made Nokia Windows Phones the fastest-growing smartphones in the world.
Building on this successful partnership, we announced some important news today: an agreement for Microsoft to purchase Nokia’s Devices & Services business, to deliver more choices, faster innovation, and even more exciting devices and services to our customers.
Today’s agreement will accelerate the momentum of Nokia’s devices and services, bringing the world’s most innovative smartphones to more people, while continuing to connect the next billion people with Nokia’s mobile phone portfolio.
With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between.
We will continue to build the mobile phones you’ve come to love, while investing in the future – new phones and services that combine the best of Microsoft and the best of Nokia.
Nokia and Microsoft are committed to the next chapter.
Together, we will redefine the boundaries of mobility.
Steve & Stephen
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions.
http://blogs.technet.com/b/microsoft...phen-elop.aspx
Poor Nokia
