Aman
In a press release, Nokia announced that Microsoft will acquire Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services for around $7.2 Billion. The deal includes $5 billion for Nokia’s Devices & Services business and $2.1 billion for license patents for 10 years. The deal is expected to be done by the first quarter of 2014.
With the increasing success of Nokia’s Lumia smartphones, Microsoft is aiming to increase its profits in mobile devices business.
“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.”
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said. “With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders.”
No Nokia has prmised its customer to give improved products in association with Microsoft.
Via: Nokia Press Release
Mckay Jonson
