Microsoft takes over Nokia handset business
Stephen Elop, the CEO of Nokia who was formerly of Microsoft, aligned Nokia with Microsoft for the Lumia series of phones, and famously resisted the company adopting Android as a platform.
Officially speaking, Microsoft will purchase all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
The Guardian is among those reporting the €5.44bn (£4.6bn) deal. Charles Arthur writes:
As part of the deal Stephen Elop, now Nokia’s chief executive, will rejoin Microsoft, which he left in September 2010 to take over the then-struggling Finnish company. Elop, 49, has been tipped as a leading contender to become the next chief executive of Microsoft, after the announcement at the end of August by Steve Ballmer that he would depart within 12 months. A total of 32,000 Nokia staff will join Microsoft, including 4,700 based in Finland.
You can see Nokia’s official statement:
“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.”
The departing Microsoft CEO Steve Ballmer had this to say:
“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. 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.”