Tuesday 3 September 2013

Microsoft takeover Nokia for 5.4 billion Euros

Microsoft announced the acquisition of Nokia and majority of its assets including devices and services and a license agreement on the patent portfolio and mapping services of the Finnish firm. Some had predicted, others are still waiting but Microsoft has finally created a moderate surprise this morning by announcing its decision to acquire the devices and services division of Nokia to 5.44 billion. The two companies were closely spaced from February 2011 under an agreement that Nokia was the main promoter of the Windows Phone platform. The transaction amount includes 3.79 billion that is spent on purchase of Nokia Devices & Services (Lumia Smartphones, tablets, mobile Asha) and 1.65 billion for licensing the patent portfolio and services maps. In addition, Microsoft will provide 1.5 billion Euros in convertible bonds that Nokia may avail. Stephen Elop will take the head of this extended terminal division at Microsoft Stephen Elop, Nokia CEO so back to the fold to lead an expanded terminal division. 32,000 Nokia employees will work at Microsoft, which 4700 are based in Finland, and 18,300 are involved in the manufacture, assembly and packaging.

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