Microsoft Acquires Nokia's Devices & Services Business

Microsoft Acquires Nokia's Devices & Services Business

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Microsoft today announced that it's agreed to acquire Nokia’s devices & services business and license Nokia’s patents and 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.

“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.”

“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.”

“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,” said Stephen Elop, who following today’s announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services. “With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.”

Microsoft Acquires Nokia's Devices & Services Business

Microsoft Acquires Nokia's Devices & Services Business
Za - September 3, 2013 at 11:44am
Overseas cash? Wonder why are the congress critters/IRS haven't been crying about M$ having profits offshore and not paying taxes? They bitch about Apple.
Petr - September 3, 2013 at 11:41am
Microsoft, sell Skype to anybody, Pleeeease
Kr00 - September 3, 2013 at 9:47am
One dud company buys another. This isn't news. Its a lesson on how to fail at business. On ya microsuck
florin22xxl - September 3, 2013 at 1:39pm
The only dud here is u :) Microsoft has been a since creation and still is.To bad we can't say the same thing about apple.
Max Walker - September 3, 2013 at 6:41am
the $64 dollar question is who gets all the mobile patents. Does the Nokia shell retain them or has M$ picked up all the industry patents that Nokia holds. Surely the key part of M$ strategy is to get access their R&D .
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