Microsoft Buys Nokia’s Device And Services

In a shocking move on Monday night, Microsoft issued a press release stating that they would be purchasing Nokia’s device and service arms with the licensing to its maps and patents. The purchase price of 3.79 billion euros or $4.99 billion for Nokia’s business and another 1.65 billion euros for the patents is huge.

This surprising move by Microsoft shook the tech circles on Monday night as most didn’t see this happening. This move comes only a few weeks after Microsoft announced that Steve Ballmer would be retiring in 12 months, and makes for a huge shift for both companies.

Microsoft Purchases Nokia's Devices and Services Business for $7 billion

Speed Up Growth And Increased Synergies

Two of the main reasons for the purchase, as noted in the press release were to speed up growth of Windows Phone in the marketplace. The other main reason was to increased synergies between the two companies, as these companies have worked together to build great Windows Phones as of late.

32,000 Employees Involved

With this much money in play, an estimated 32,000 employees from both Finland and around the globe will be in motion. The move will probably bring those employees from overseas to Redmond, and keep those in the manufacturing areas to help with future Windows Phones. This could however result in layoffs between the companies, but none of that was addressed in this statement.

Approval By Early 2014

After the initial press release came out, a presentation was launched on the Microsoft website to rationale the purchase of Nokia. They are confident that the prospects for approval should come by early 2014. In the US at least, federal antitrust agencies will have to review this purchase along with other industry groups, but it should lead to a rosy future between the companies.

This move by Microsoft has been expected by some, and left Nokia in the wondering of many, as to their future. Now, with Microsoft effectively purchasing the company, it will engulf the company like Motorola did with Google. This move still awaits approval, but should keep Google and Apple away, and create first-rate Microsoft phones and experiences for its users around the globe. This could be great synergy in the future for both companies.

Published: Tuesday, September 3rd, 2013 Last Modified: October 23, 2013

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