Microsoft buys mobile division of Nokia for 5.44 billion Euro

By | 10.12.2018

Microsoft buys mobile division of Nokia for 5.44 billion euros

After the announcement of the exclusive partnership between Nokia and Microsoft in February 2011, the rumors about the purchase of Finnish company the tech giant. Finally, they confirmed. Today, Microsoft announced its intention to buy the unit devices and services Nokia. The transaction will be completed in the first quarter of next year, and its cost will be 5.44 billion euros – the company will pay 3.79 billion euros for the unit and 1.65 billion euros to license Nokia patents. 32,000 employees will be transferred to Microsoft, including 18 300 those who are engaged in production and approximately 4,700 located in Finland.

A business that takes on Microsoft, generated 14.9 billion euros in revenue last year, accounting for nearly 50% of all sales of Nokia. The Americans will get the Lumia and Asha brands, as well as to enter into various licensing agreements with Nokia. In addition, Microsoft is licensing the Nokia brand, which, however, will continue to be owned by the Finnish company. It will retain its patent portfolio, but will grant Microsoft a 10 year license for its use. Microsoft will become a strategic partner of the service HERE and will separately pay Nokia for a license for four years. After completion of the transaction Nokia will lose the right to use your brand in their mobile devices until December 31, 2015.

In Finland, Microsoft will open a data center, which will serve customers in Europe. In subsequent years, it will invest more than $ 250 million with potential for further expansion.

All this means that we are unlikely to ever see a Nokia device with Android. Now the Finnish company will focus on its business of manufacturing network equipment. Earlier, the Finns bought the Siemens share in the joint Nokia Siemens Networks. In addition, Nokia will be engaged in the platform positioning HERE. Microsoft, in turn, will accelerate the pace of development of Windows Phone, and will improve the integration of the mobile ecosystem, with Windows.

In General, you no longer need to rely on external hardware manufacturers, but does this mean an end to efforts to attract other hardware partners, and we see in the future new devices with WP from companies such as Samsung, HTC and Huawei. Microsoft says that the acquisition will not change the relationship with them. Anyway, we have yet to figure out if this deal is to improve the situation of Windows Phone or not.


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