Microsoft Acquired Nokia Business for 7.17 Billion USD

Microsoft announced on Monday evening, the much expected news that it has finalized the deal with Nokia to takeover “substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.”

The total price of the deal is $7.17 billion of which $5.0 billion is the consideration for Devices and Services business acquisition and the remaining $2.17 billion is for patent licensing deal

Back in 2011 Microsoft entered in a partnership with Nokia but now Microsoft has acquired the major part of Nokia’s business. As a part of the new contract Stephen Elop who is the CEO of Nokia will be the new Nokia Executive Vice President of Devices & Services of Microsoft. From this movement it is expected that there are chances of being Elop will be appointed in a key position in the Microsoft toppers. this could be a strong signal about the future of Microsoft’s executive leadership.

While announcing the deal, Steve Ballmer who is the Microsoft CEO told to the reporters that “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.”

And now with this deal it could be the winding up of old Nokia like all we knows, but the company claims that it is planning on moving further as an individual entity and with different strategy. Nokia’s board chairman and current interim CEO after Elop’s relieve was quoted in a press release that “this is an important moment of reinvention and from a position of financial strength, we can build our next chapter… 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.”