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Nokia to sell phone unit to Microsoft for $7.2 bln

Discussion in 'Education & Research' started by Marqueur, Sep 3, 2013.

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  1. Marqueur

    Marqueur Peaceful Silence ELITE MEMBER

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    Beleaguered Finnish mobile phone maker Nokia will sell its mobile phone unit to US group Microsoft for 5.44 billion euros ($7.17 billion), it said on Tuesday.

    Nokia will grant Microsoft a 10-year non-exclusive licence to its patents and will itself focus on network infrastructure and services, which it called "the best path forward for Nokia and its shareholders."

    The company also announced the immediate departure of chief executive Stephen Elop. He will be replaced in the interim by Risto Siilasmaa, Nokia's chairman of the board.

    Nokia was long the global leader in making mobile phones but has been overtaken by rivals Samsung and Apple as it struggled to establish winning business models and mobile devices.

    The transaction announced Tuesday is expected to be completed in the first quarter of 2014, pending approval by Nokia shareholders and regulatory authorities.

    Some 32,000 Nokia employees are expected to transfer to Microsoft, including approximately 4,700 people in Finland, the company said.

    The operations affected by the transfer generated approximately 14.9 billion euros in 2012, or almost 50 percent of Nokia's net sales, the company said.

    Of the total purchase price of 5.44 billion euros, 3.79 billion relates to the purchase of Nokia's Devices & Services business, and 1.65 billion relates to the mutual patent agreement and future option.

    Last month, Nokia finalised the purchase of German engineering giant Siemens' 50 percent stake in Nokia Siemens Networks for 1.7 billion euros.

    NSN, which is specialised in high-speed mobile broadband, was set up as a joint venture between the two companies in 2007, a partnership that expired in April. The unit has posted stronger earnings than Nokia's mobile phone business.

    NSN posted a net profit of 8.0 million euros in the second quarter of this year, compared to Nokia's net loss of 227 million euros in the same period.

    Nokia to sell phone unit to Microsoft for $7.2 bln - Hindustan Times

    Game over for Nokia ...
     
  2. layman

    layman Aurignacian STAR MEMBER

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    RIP Nokia, and
    RIP for mobile division of Microsoft too...

    Pathetic.
     
  3. raheelbs

    raheelbs REGISTERED

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    The Chief Executive of Nokia Stephen Elop will step aside and return to Microsoft, his position at Microsoft is not yet disclosed but it is being rumored that Mr. Elop will be signed as the CEO for Microsoft once Ballmer hands in his resignation in the coming year.

    As demands grow weak for Nokia’s mobile devices the company is faced with cash-flow problems. It has lost a majority of its market share to Apple and Samsung.

    "It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," Microsoft's outgoing CEO, Steve Ballmer, said in a statement.

    Source: Microsoft to Acquire Nokia for $7.2 Billion
     
  4. Rock n Rolla

    Rock n Rolla Lt. Colonel STAR MEMBER

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    Remember the story of the tortoise & hare...Nokia was the 'hare' and was leading the race, but dozed off thinking others wouldn't catch up !!

    Goodbye Nokia, time's up :wave:
     
  5. Ayush

    Ayush 2nd Lieutant FULL MEMBER

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    good bye nokia :cry:
     
  6. Gessler

    Gessler BANNED BANNED

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    This had to happen...but however Nokia made it's mark on the mobile phone industry like no other,
    and will be remembered for their contribution in the field.

    They made history, and are now becoming a part of history themselves.

    Farewell.
     
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