[HOME ] [ABOUT] [PHOTOS] [VIDEO] [BLOG] [HOUSTON] [TEXAS] [U.S. NEWS] [WORLD NEWS] [SPORTS] [POP CULTURE] [CONTACT]
Microsoft acquires Nokia devices, services and all its patents
(L-R) Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer
by Joseph Earnest September 3, 2013
Newscast
Media REDMOND—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 ($5 billion) to purchase substantially all of Nokia's Devices & Services business, and EUR 1.65 ($2 billion) billion to license Nokia's patents, for a total transaction price of EUR 5.44 billion ($7.2 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.
"It's a bold step into the future – a win-win for employees, shareholders and consumers of both companies. 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," said Steve Ballmer, Microsoft chief executive officer. "In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution."
As part of the transaction, Nokia is assigning to Microsoft its
long-term patent licensing agreement with Qualcomm, as well as other
licensing agreements.
Microsoft is also acquiring Nokia's Mobile Phones business unit, which serves hundreds of millions of customers worldwide, and had sales of 53.7 million units in the second quarter of 2013. Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. Add Comments>>
|
|
Join the Newscast Media social networks
for current events and multimedia content.
Copyright© Newscast Media. All Rights Reserved. Terms and Privacy Policy