It has been a long journey for Nokia from being the top market leader in the mobile segment to being a struggling competitor. However, Nokia has finally put all the rumors to end as the mobile giant has decided to sell their mobile devices and service business to Microsoft. Today, both the companies made an announcement that the Board of Directors have decided to enter an agreement where Microsoft will purchase all of Nokia’s Devices and Services business, license Nokia’s patents and license and use Nokia’s mapping services.
For this Microsoft will pay EUR 3.79 billion for the Nokia’s Devices and Services business, EUR 1.65 billion for license Nokia’s patents that sums up to EUR 5.44 billion in cash. According to Microsoft this giant deal will close in the first quarter of the year 2014 and the agreement is still subjected to approval of Nokia’s shareholders, regulatory approvals and other conditions. Steve Ballmer Microsoft’s CEO said that although it does not look like a fair deal but it is going to be a win-win agreement for all Nokia employees, shareholders, and even for the consumers. He said that they are excited to bring Nokia’s people and technologies to the family of Microsoft.
When the agreement will close it is expected that around 32,000 employees will be transferred to Microsoft. The agreement will also include Nokia’s long term patent licensing agreement with Qualcomm along with other licensing agreements that is going to help Microsoft to race ahead in the competition while Nokia gets to keep the Nokia brand name in return.