07 June, 2013

Microsoft Corp. Buys Nokia Corp.

Microsoft Corp. buys Nokia Corp.’s devices and service business and getting access to the company’s patent for 5.44 billion Euros ($7.2 billion). This was announced on Monday 2nd September 2013.  Microsoft is spreading its wings over the smart phone industry as it sets out to battle the Google phones and Apple phones. This is a competition we are yet to see.

Microsoft will pay 3.79 billion Euros ($5 billion) for the Nokia unit that makes mobile phones, including its line that makes Lumia smartphones.

Microsoft is also paying 1.65 billion Euros ($2.2 billion) for a 10-year license to use Nokia's patents, with the option to extend it indefinitely.

Microsoft said it is acquiring Nokia's Asha brand of low to mid-level smartphones and will license the Nokia brand for current Nokia mobile products. This means that the Asha will be available for more efficiency than how it has been.

"This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia's mobile phones to serve as an on-ramp to Windows Phone," the companies said in a joint statement.

Nokia, based in Espoo, Finland, said Stephen Elop will step aside as president and CEO to become executive vice president of Nokia devices and services. Chairman Risto Siilasmaa will stay in his current role and assume the duties of interim CEO.

Elop is expected to join Microsoft at the close of the transaction, along with several Nokia vice presidents.

Nokia plans to hold a news conference in Finland on Tuesday morning to discuss the deal.

The deal will close early 2014 where about 32,000 Nokia employees will transfer to Microsoft.

Nokia plans to hold a news conference in Finland on Tuesday morning to discuss the deal.

I hope to see the best of Microsoft through the phone line it is in the process of launching. At least I know that Microsoft has been involved in the world since I was born, the computer software and apps have proved more than enough that Microsoft will be a big deal of rival to other smartphone producers worldwide.

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