Microsoft announced Monday that it would acquire Nokia’s mobile phone business in the latest blockbuster news that signals a massive transformation of the tech giant.
Just two weeks ago, the company revealed that Chief Executive Steve Ballmer would retire in the next 12 months. Last week, Microsoft said it had struck a deal with an activist investor, seeming to indicate the company was under pressure to revamp its business.
The deal with Nokia would do just that. It would push Microsoft even further from its roots as a software company to become the “devices and services” company that Ballmer has discussed in recent months.
“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 in a press release.
Under the terms of the deal, Microsoft will pay $7.2 billion to purchase Nokia’s devices business as well as license all its patents.
The deal echoes Google’s purchase of Motorola. It’s also not entirely surprising.
Microsoft has a partnership deal in place with Nokia to get the device maker to focus on building Windows Mobile gadgets. Also, in the wake of Ballmer’s retirement news, Nokia CEO Stephen Elop was one of the names mentioned as a possible CEO candidate.
Several top Nokia executives will leave Nokia to join Microsoft, including Elop, who will become Nokia’s executive vice president of devices and services.
“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,” Elop said in a press release. “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.”
The remaining parts of Nokia’s businesses will still be based in Finland and the company is expected to appoint a new CEO.
Other Great Posts
- 70 million Android tablets activated during last year, 1 million apps on Play Store
- Sony Xperia Z Ultra: First impressions
- VIDEO: World’s scariest interview? LG ‘plays cruel prank on job applicants’
- BlackBerry’s chat service BBM coming to Android, iPhone by this week
- Can Microsoft Edge be the Perfect Teacher’s Aide
- Google Maps Upgrade Will Enable You Get Directions When You’re Offline
- Nissan Automated Cars Series
- Xbox One: All You Need to Know About Microsoft’s New Console
- Facebook Stops the Mention of a website on its Platform
- 10 apps to cut down your phone bill
- Apple Touch ID fingerprint tech ‘broken’, hackers say
- Twitter adds live Periscope broadcasts to timelines
- 10 new features in Android 4.3 Jelly Bean OS
- Unresolved Issues Using Touch ID with iOS 9.1
- iPhone 5S, iPhone 5C names ‘confirmed’, next generation iPhone to have fingerprint reader, Gold colour variant
- Intel shows how this button-sized chip could revolutionise live sports
- N1.04trn Fine: We Expect No Operation Disruptions For Not Paying Fine – MTN
- FIXING IMMUNIZATION IN AFRICA
- Best Intel Haswell laptops, Ultrabooks, MacBooks and a host of others
- THE SOCIAL MEDIA JURY MASTERCLASS AT LAGOS CREATIVE INDUSTRY FAIR
- United improves Fabregas bid
- The Most Dreaded Android Malware Ever Liveth
- Private varsities VCs ask NANS to mediate between FG/ASUU
- Ozil undergoes Arsenal medical after agreeing personal terms
- JONATHAN SACKS 9 MINISTERS •Ashiru, Rufa’i, Obada affected •Some board members also to go •Maku, Wike to oversee Defence, Education
- 46 year-old Nigerian accountant murdered in her Essex home
- Seven YR Old girl steals mobile phone out of a woman’s handbag under the approving eye of her mother
- Get Free 5GB On Your Mtn Sims..
- MTN – An Unfolding Corporate Scandal Of A Yellow Brand
- After 100 year Einstein Theory Scientist directly detect Gravitational Waves
- Okupe Assures Of Uninterrupted Power Supply Before Year End
- The controversy continues: Did Bishop T.D Jakes fall under a $1 million anointing? (WATCH)
- Naked woman rescued in East River after jumping in near Manhattan Bridge
- MOYES WILL FAIL IF..
- Don Jazzy and Olamide Drama at #TheHeadies2015 [Tweets and Videos]
- FG To Handover PHCN To Successor Companies 30th September
- 2015 was Held Spellbound by the Hoverboard Here are Some Epic Videos
- Buhari visits China’s Aerospace Science Technology Corporation Center
- EFCC set to Arraign ex- Governor Gabriel Suswam On Alleged N3.1Billion Fraud
- BestRecovery Hack Exposes Nigerian ‘Yahoo Boys’-(MUST READ)