Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents

Gannu

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Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.

“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, Nokia Interim CEO. “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. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.”

Microsoft Press Release

Nokia Press Release
 
So, Nokia is selling "all" of its assets. I dont know whats the "Next Chapter" Risto is talking abt.
No Mobile devices, No Nokia.
 
So the trojan horse aka Stephen Elop has done his job successfully. Their main focus will be new advanced tech, whatever that means. Let's just hope they are going to build those concepts which they've been showing us for years.
 
They are selling only the mobile devices and services unit, along with all the patents included in their mobile portfolio. Their networking unit and other businesses will still stay with them.

Good move from MS, but what will happen to Nokia now? MS is clearly moving towards being a hardware company, the Surface proves that. Perhaps they will come out now with a Surface phone after all. Also, I see that Nokia RT tablet happening, which was just in a trial phase up until now.

With Ballmer retiring, will Elop have a chance at succeeding him as the next CEO? There is a possibility of that happening.
 
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Awesome news, Nokia would not have survived alone, Microsoft war-chest makes sure that they will have time and money on their side while they are slowly gaining marketshare.

So, Nokia is selling "all" of its assets. I dont know whats the "Next Chapter" Risto is talking abt.
No Mobile devices, No Nokia.

Nokia factories, employees everything is bought by Microsoft, so Nokia phones will be available for purchase as usual.
 
This come just when Lumia is pick up the pace.
This looks like very calculated move.
IMHO when it comes to design Microsoft suck big time.
Ex their miserable KIN phones. If same Nokia talents are going to be retained then better.
Nokia should have license their patents alone or should have allowed MS to invest/use their Mobile devices business .

Nokia's bread and butter is their Mobile devices unit. Not sure or do not understand how long the Cash reserve is going to hold up or benifit Nokia. or what they are going to do.

MS primarily a software company turnning to hardware; Nokia Hardware company becoming "what??!! again"
 
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So whats going to happen to low end feature phones like X2-02, 112, Asha series etc.. ? Are they going to stop selling/supporting them :grumpy: .
 
IMHO when it comes to design Microsoft suck big time.
Ex their miserable KIN phones. If same Nokia talents are going to be retained then better.
Come on, MS makes good hardware too. The Surface is one of the best built hybrids out there, and before that there was Zune; it had great design too. The Xbox 360 controller is considered one of the best by many gamers, and it is also the choice of many PC gamers. Also, they have some good computer hardware products such as keyboards and mice. With their limited foray into hardware, they make either crappy designs, or very good ones, and not many in between. Perhaps that's why you are confused.
 
http://timesofindia.indiatimes.com/...t-business-for-7-2bn/articleshow/22246856.cms


HELSINKI: Microsoft Corp on Tuesday said it would buy Nokia's mobile phone business for 5.44 billion euros, and the Finnish firm said its CEO, Stephen Elop, would join Microsoft when the transaction closed.

Finland's Nokia, once the undisputed leader in mobile phones, has been struggling to respond to the challenge from smartphone makers such as Apple and Samsung.

Analysts say Elop's bold bet in 2011 to adopt Microsoft's untested Windows Phone software has yet to pay off.

The deal is expected to close in the first quarter of 2014 and is subject to approval by Nokia's shareholders and regulatory approvals. Nokia partnered in 2011 with Microsoft and uses Microsoft's Windows software to run its mobile phones.

"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," Microsoft's outgoing CEO, Steve Ballmer, said in a statement.

"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."

Nokia said in a statement it expected that Elop, along with senior executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, would transfer to Microsoft when the deal was concluded. It did not say what roles they would take at Microsoft.

Nokia board chairman Risto Siilasmaa would take over CEO duties while the Finnish firm looked for a new CEO, it said.

Elop, a Canadian hired by Nokia in 2010 from Microsoft, has been one of the favourites to take over as Microsoft chief when Ballmer steps down.
 
So whats going to happen to low end feature phones like X2-02, 112, Asha series etc.. ? Are they going to stop selling/supporting them :grumpy: .
They were most interested in the Asha line as they see it as a kind of starter phone for people..i.e. sell it in the developing countries at a low cost and then hook them on to the platform so that they will mostly upgrade to a higher end Windows phone when the time comes. Symbian 40 may not be used in upcoming Asha phones..
 
Come on, MS makes good hardware too. The Surface is one of the best built hybrids out there
Regarding Surface - did not own or seen it personally so cant comment, but the kickback stand was pathetic. Can be used at only one angle that too on a table/desk and How was the sales of Surface hardware ?? again pathetic.

there was Zune; it had great design too.
and where is Zune now. This is excatly what I'm saying, they desire big and (Mostly )lack innovation,vision and bail out soon.The product is dead in few years down the lane and do rip off or other hardware.

The Xbox 360 controller is considered one of the best by many gamers, and it is also the choice of many PC gamers..
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Agree to this. but personally consider this as a fluke or just luck. or Not too many guys involved so they got it right.

Perhaps that's why you are confused.
Not confused , but concerned. Nokia is Hardcore mobile and devices company selling their hardware bussiness that too MS looks like slit in the throat or leaving it for dead.

On software front they are solid. But on hardware - they are greedy , lack innovation , vision and without market research/common sense insanely overprice hardware i.e surface.
 
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Microsoft does make top qlty hardware. Whether its a commercial success is a different thing. Only their first batch for XBox360 sucked. RROD.
 
I have been irked by this news as soon as it cropped up everywhere. I have fond memories of Nokia phones, right from my first phone (Nokia 5110) till my current (Lumia 720), I have loved every Nokia I ever owned. I guess it was the only way out for the struggling company, struggling because of its own complacency at some point maybe. This is the end of an era! literally.
I have not used much of MS hardware, however, my Sidewinder X6 and the X360 controllers do work just fine even after years of abuse. Remember those MS branded(ball type) mice? They used to outlast a few generation of microprocessors. So, I guess its not all that bad.
However, my current phone will most likely be my last Nokia and that is what irks me, may be a tad emotionally, maybe without proper reason. But I am sad that Nokia is sold. I am more sad because it was sold to MS( a company that traditionally looks down/ disregards its customers). There is no point being loyal to a company like MS. The company lacks a soul, especially off-late.
But what replaces a Nokia? I see no option, but that might be just me, habituated with Nokia. That's it, Nokia had become a habit. I have bought Symbian phones in the Android/iOS era, jumped to WP7 at the launch of the Lumia with all the shortcomings associated with it, while admiring Android all the time.
By the way, what happened with the acquisition of Motorola by Google? Why are we still seeing Asus /LG Nexus phones/tabs inspite? I hope Nokia Phones doesn't share similar fate at the hands of MS. But then again, after this acquisition, should I even care?
 
Actually MS bought Nokia is to get "Asha OS" now it will be re branded as Windows 9 and it will replace windows 8 on Lumias and surface tabs even they will replace the windows 8 on desktop with Asha OS , and once again microsft gain the market share in mobile OS and they will beat iphone and androids . they may bring DOS to run on current asha series .
 
R.I.P Nokia. TBH, when Elop took over Nokia, they were already reeling. In his three years of reign, at least he tried to move the company in a different direction. Sadly, he failed.

But as @sabby mentioned, if he indeed was a trojan horse, then he did a mighty good job at it.
 
MS would be wise if they let the Nokia Mobiles & Services division be as a separate unit without interfering much and providing them full resources of WP division. They have also bought the right to use Nokia on mobiles for the next 10 years. very cheap deal considering they got most of the Nokia along with the patents(or is it the license to use the patents for 10 yrs ? not sure). MS should also utilize Nokia marketing dept. for their products.
 
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