Nokia Mobile Phone Business will takeover by Microsoft, its looking an obvious prospect in near future… Microsoft Corporation on Tuesday (3rd September 2013) announced that it would buy Nokia’s Mobile Phone Business for 5.44 billons euros; we found news that Nokia’s CEO, Stephen Elop, would join Microsoft when the Transaction get closed.
This deal is expected to close in the first quarter of 2014 and is subject to approval by Nokia’s shareholders and regulatory approvals. Nokia partnered in 2011 with Microsoft and uses Microsoft’s Windows software to run its mobile phones.
This has been great run for Nokia and at last it get collapsed in the hands of US’s Software Giant (Microsoft Corporation) – If we looked in to the recent market Nokia’s Mobile Devices sale decorated and specially in India. Finland’s Nokia unable to compete with the Latest Trends which was introduced by Google (Android OS) this affordable technology was adopted by other Mobile Hardware vendors and these new devices nearly wiped up Nokia sale from the Market.
Nowdays if we hear about Nokia Smart Phones Devices, they are Nokia Lumia versions which are able keep little bit of impression on the people again they are powered by Microsoft Mobile OS. I would say it’s a good ploy by Microsoft to go for acquiring Nokia Mobile Phone Business.
“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. “Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services,”he added.
Nokia said in a statement Elop, along with their senior executives, would transfer to Microsoft when the deal was concluded but it did not say what roles they would take at Microsoft. Nokia board chairman Risto Siilasmaa would take over CEO duties while the Finnish firm looked for a new CEO, it said.
In 2011, after writing a memo that said Nokia lacked the in-house technology and needed to jump off a “burning platform”, Elop made the controversial decision to use Microsoft’s Windows Phone for smartphones, rather than Nokia’s own software or Google Inc’s (GOOG.O) ubiquitous Android operating system.
Nokia, which had 40 percent of the handset market in 2007, now has just 15 percent, and only 3 percent in smartphones.
Shares in Nokia surged 34 percent to close at 3.97 euros by late Tuesday. While up from their decade-low of 1.33 euros hit last year, they are still only a fraction of their 2000 peak of 65 euros.
After today’s gains the whole company is worth about 15 billion euros, a far cry from its glory days when it reached over 200 billion euros.
Tuesday’s deal includes an agreement to license Nokia’s patent portfolio for 10 years. Without it, Nokia’s devices and services business would have been worth about 3.7 billion euros, the companies said.
“It’s very clear to me that rationally this is the right step going forward,” Elop told reporters, though he added he also felt “a great deal of sadness” over the outcome. “I feel sadness because inevitably we are changing Nokia and what it stands for.”