Microsoft is making bold moves this year: The retirement of Steve Ballmer, release of Surface 2, and Windows 8.1. Eventually we’ll even see a new XBox. But today’s news is the Microsoft acquisition of Nokia. The news should embolden perceptions that the phone market is important to Microsoft.
According to a Microsoft September 3, 2013 press release, Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. 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,” said Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”
From the Nokia press release:
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Transaction expected to be significantly accretive to Nokia earnings.
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Nokia continues to develop, and sees significant value in, advanced technologies, its patent portfolio and Nokia brand.
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Nokia focusing on NSN, HERE and Advanced Technologies post-transaction. Each business a leading player in its respective segment.
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Nokia outlines changes to leadership and Board of Directors.
In terms of the leadership team: Risto Siilasmaa will assume an interim CEO role for Nokia while continuing to serve in his role as Chairman of the Nokia Board of Directors as Stephen Elop will step aside as President and CEO of Nokia Corporation, resign from the Board of Directors, and will become Executive Vice President, Devices & Services.
References
Microsoft (2013, September 3). Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services. Retrieved September 3, 2013 from http://www.microsoft.com/en-us/news/press/2013/Sep13/09-02AnnouncementPR.aspx.
Nokia (2013, September 3). Nokia to sell Devices & Services business to Microsoft in EUR 5.44 billion all-cash transaction. Retrieved September 3, 2013 from http://press.nokia.com/2013/09/03/nokia-to-sell-devices-services-business-to-microsoft-in-eur-5-44-billion-all-cash-transaction/.