Microsoft Announces $7 Billion Deal to Acquire Nokia
It’s the end of an era, my friends! Microsoft has now announced a $7 billion deal to acquire Nokia. The deal not only includes the purchase of Nokia’s smartphone division, but also factors in a long-term licensing agreement for many key Nokia patents.
In the transition, we will see several Nokia executives join up with Microsoft, Stephen Elop included. There are even rumors that Stephen Elop could end up being appointed as the next CEO of Microsoft.
“Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing,” the companies said in a joint press statement.
The idea is that the deal will give Microsoft more power in the mobile world, and will solidify (the now smaller) Nokia’s financial position going forward.
How will this affect Windows Phone 8?
Nokia is currently the biggest Windows Phone 8 partner, so this move certainly has some interesting implications. For starters, it seems unclear whether the Lumia brand will continue to be used. Remember that the deal also doesn’t seem to include the use of the “Nokia” name.
Additionally, Nokia already controlled the vast majority of the WP8 market, and with that power shifting to Microsoft officially, it is hard to say how WP8 partners like HTC and Samsung will react.
Between Ballmer’s pending departure and the buyout Nokia, things are clearly changing for Microsoft – it’s too early to say whether for the better or worse. What do you think of this buyout? Is it a good move for Microsoft, or one that will ultimately backfire? Share your thoughts below.
Source : Wall Street Journal