Microsoft has just announced it will acquire Nokia Devices & Services with the deal set to close in the first quarter of 2014. While Microsoft has flirted with the idea of buying Nokia for a while, recent speculation had Nokia building the next Surface and Nokia Windows Phones far outsold the competition.
In a joint letter from Steve Ballmer and Stephen Elop, the company say they’re taking a bold step into the future of mobility. While Microsoft dipped it’s tow in the water by making the Surface tablets, it’s now throwing caution to the wind by owning one of the largest hardware manufacturers on the planet in Nokia.
All Things D are reporting the deal is worth $7.17 Billion, Microsoft must be laying down some serious coin to get this one. The acquisition comes at an interesting time given Google’s just started to wake up Motorola after purchasing them. If the next technology war is going to be fought on mobile, it makes sense that Redmond owns a mobile creator, what isn’t known yet is how the market will react to the news.
Following the transaction, Nokia plans to focus on its three established businesses, each of which is a leader in enabling mobility in its respective market segment: NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing.
Their roughly 32,000 employees will become Microsoft employees including almost 5K in Finland. Perhaps some patents, perhaps they retain the camera R&D division, still it’ll be a very different company going forward.
For those that speculated that Elop would make a good replacement for Ballmer when he resigns, the chances of that just went through the roof.
You can read the full post below.
Microsoft to acquire Nokia Devices & Services, accelerating the Windows ecosystem
Nokia and Microsoft have always dreamed big – we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we’ve come a long way toward realizing those dreams.
Today marks a moment of reinvention.
Nokia has an identity spanning 150 years of heritage, innovation, excellence, and change which began and will continue in Finland and around the world. From humble beginnings as a paper mill factory, to manufacturing rubber boots and car tires, and then to mobile phones, reinvention is in Nokia’s blood.
Nokia will now write its next chapter, focused on enabling mobility through its leadership in networking, mapping & location, and advanced technologies.
For Microsoft as well, today is a bold step into the future, a huge leap forward on our journey of creating a family of devices and services that delight people and empower businesses of all sizes.
Our partnership over the past two and a half years, which combined our respective strengths to build a new global mobile ecosystem, has created incredible results: award-winning phones and amazing services that have made Nokia Windows Phones the fastest-growing smartphones in the world.
Building on this successful partnership, we announced some important news today: an agreement for Microsoft to purchase Nokia’s Devices & Services business, to deliver more choices, faster innovation, and even more exciting devices and services to our customers.
Today’s agreement will accelerate the momentum of Nokia’s devices and services, bringing the world’s most innovative smartphones to more people, while continuing to connect the next billion people with Nokia’s mobile phone portfolio.
With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between.
We will continue to build the mobile phones you’ve come to love, while investing in the future – new phones and services that combine the best of Microsoft and the best of Nokia.
Nokia and Microsoft are committed to the next chapter.
Together, we will redefine the boundaries of mobility.
Steve & Stephen