Microsoft buys Nokia for 5.44 billion euros!
The U.S. computer giant has decided to spend $ 7.2 billion (5.44 billion euros) for the Nokia mobile phones and smartphones. Steve Ballmer, CEO of Microsoft, has described this historic moment as a “bold step into the future – a win-win for employees, shareholders and customers of both companies.”
Microsoft and Nokia: Business Deal of the Year
Lately, Nokia is desperately trying to maintain the position of one of the largest handset manufacturers in the world, but it seems like the Finnish are losing their way. They have finally realized they need support, so the company has agreed to sell the units of Devices & Services to the Microsoft. According to the agreement, Nokia will sell the business entirely for the production of mobile phones and smart devices. In the property of the Microsoft will be all departments, operations, sales and marketing, and design. About 32,000 Nokia employees will be transferred to the Microsoft, and Nokia’s CEO Stephen Elop will transfer to Microsoft as well. (Note: Elop used to work at Microsoft before becoming the Nokia CEO.) The acquisition is expected to close by the first quarter of 2014.
For many analysts, the agreement between these two companies didn’t come as a surprise, since Nokia is the only manufacturer that exclusively uses Microsoft Windows Phone 8 OS for its top-range smartphones. On the other hand, Microsoft has struggled to gain a significant market share for Windows Phone while Android and the iPhone continue to dominate.
Nokia’s flagship Lumia phones are most likely the best-selling Windows Phones today considering the fact the company sold 7.4 million last quarter. Nokia attacks the low-end of the smartphone market with cheaper devices, but also continues to make high-end phones such as Lumia 920, 925, and 1020.