Taking a “bold step” into its mobile future, Microsoft has purchased Nokia’s Devices and Services Businesses. This means the company will acquire Nokia’s smartphone and mobile phone businesses, design team, world-wide manufacturing and assembly facilities around the world, as well as operations, sales, marketing and support teams.
Under the terms of the agreement, Microsoft will pay a total transaction price of EUR 5.44 billion, U.S. 7.17 billion in cash. Expected to close in the first quarter of 2014, the purchase includes EUR 3.79 billion to for substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents.
“We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together,” Microsoft CEO Steve Ballmer stated in an email to Microsoft employees. “Our Windows Phone partnership over the past two and half years has yielded incredible work – the stunning Lumia 1020 is a great example. Our partnership has also yielded incredible growth. In fact, Nokia Windows Phones are the fastest-growing phones in the smartphone market.”
Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.
Microsoft offers more information on the transaction through its strategic rationale presentation online.
- Movile Adds 13 New Series to PlayKids TV and Sets Sights on Global Expansion
- Club Penguin Co-Creator Lance Priebe Shares Journey to Mech Mice Launch
- New Disney Technology Allows You to ‘Feel’ Touchscreen Images
- Amazon Launches New Program for Developers
- App Annie Expands Analytics & Market Data Platform to eBook Realm
- Magic Light Pictures Launches First Mobile App
- 2013 Digital Kids Edu and Summit Audio MP3 Files Released
- Digital Kids Summit and Digital Kids Edu Speaker Presentations Now Available
- Skylanders Opens the Magical Skylands World to YouTube in New Boomcast Webisodes
- Baby Bytes and Precision Development Partner to Create App Suite for Families with Young Children
- Digital Kids Fall Events Wrap Up
- Lil’Stylers Launches Kids Fashion App
- TribePlay’s Dr. Panda App Series Surpasses 10M Downloads
- Candy Crush Publisher King Files U.S. IPO Valued at $5b & Hires New Chief Financial Officer
- Cupcake Digital and Zodiak Kids Launch First Tickety Toc Story App Experience
- ClickN Kids Introduces Tablet Featuring Looney Tunes Phonics Program
- Foothill Entertainment and Kidobi Enter Digital Distribution Partnership
- Hasbro and PlayDate Digital Introduce My Little Pony Digital Book App
- Toca Boca Launches Toca Cars
- Fingerprint Expands Mobile Edutainment Platform to Malaysia