Microsoft buying Nokia Devices and Services unit, licensing patents for €5.44 billion

It's been something mused over for the past few years every bit a "what if" scenario, and tonight it has come up to fruition: Microsoft is buying Nokia's Device and Services Unit and licensing the company's patent portfolio. Since partnering with Microsoft in early 2022 and launching the Lumia line of Windows Phone handhelds Nokia has held a leading and premiere position in the Windows Phone space, though they have struggled to gain pregnant market share and profitability even with the financial back up of Microsoft. The deal is expected to close in the commencement quarter of 2022, with Microsoft paying €iii.79 billion for the Devices and Service Unit, and some other €1.65 billion for the licensure of Nokia's patent portfolio.

The bargain will see around 32,000 Nokia employees transferred to Microsoft. Additionally, Nokia CEO Stephen Elop is stepping bated as the company's master executive, replaced by Risto Siilasmaa as acting CEO (formerly chairman of the Nokia Board of Directors). Elop isn't going away - he's assumed the role of Nokia Executive Vice President of Devices & Services - in other words, he's in accuse of the division of Nokia that is being sold to Microsoft, and thus will be one of the 32,000 employees making the transition.

The deal is, of grade, subject to approval past Nokia's shareholders. To wit, an "boggling general meeting" of said shareholders has been called for 19 November 2022. Microsoft and Nokia wait the deal to close in the first quarter of 2022. The full deal adds up to €v.44 billion, or $7.12 billion in United states of america dollars.

Microsoft CEO Steve Ballmer, himself on the way out within the next 12 months, called the acquisition "a bold step into the future" and "an win-win for employees, shareholders, and consumers of both companies."

Bringing Nokia's devices edition into the fold follows Microsoft's first foray into consumer tablet hardware in belatedly 2022 with the Surface line of tablets. Microsoft has been rumored to be working on a Surface smartphone running Windows Phone for some fourth dimension, though information technology has never seemed likely for a release. Thank you to their tight partnership with Microsoft, Nokia has served every bit the defacto device manufacturer for Windows Telephone; this acquisition only serves to strengthen that association.

Microsoft volition take their work cutting out for them in bringing Nokia'due south devices and services unit into the fold. Purchasing the virtually public parts of Nokia will no doubt change the Window Phone dynamic with regard to other licensees like Samsung and HTC. While some expressed displeasure with Microsoft's entry into the PC hardware business organisation with the Surface tablets, the attempt resulted in a $900 million writedown on just the Surface RT for Microsoft. Nokia is a different beast, holding a leading position in the Windows Telephone space.

Equally office of the understanding Microsoft volition also take custody of Nokia's Asha brand of phones. While the Lumia Windows Phone line sold seven.4 million devices in the second quarter of 2022, the S40-powered Asha devices saw sales of a whopping 53.vii million. The low cost devices are highly popular in the developing world.

While Microsoft is purchasing the Devices and Services Unit of Nokia, the Finnish company will maintain command of their mapping unit and the Hither mapping and navigation platform. Microsoft has signed up as a "strategic licensee" of the service, though the 4-year agreement is a separate bargain from this acquisition. Additionally, Nokia will retain their network infrastructure businesses and Advanced Technologies development and licensing arm.

Source: Microsoft

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Source: https://www.windowscentral.com/microsoft-buying-nokia-devices-and-services-unit-and-patents-544-billion

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