Microsoft Buys Nokia’s Cellphone Division

Microsoft today announced that it will purchase “substantially” all of Nokia’s device and service arms and will license the company’s patents and mapping know-how. The acquisition is said to have cost Microsoft over $7 billion ($4.99 billion for the business and $2.18 for the manufacturer’s patents. Also as part of the deal, Nokia’s current CEO Stephen Elop will be stepping down as the…

 

Microsoft today announced that it will purchase “substantially” all of Nokia’s device and service arms and will license the company’s patents and mapping know-how.

The acquisition is said to have cost Microsoft over $7 billion ($4.99 billion for the business and $2.18 for the manufacturer’s patents. Also as part of the deal, Nokia’s current CEO Stephen Elop will be stepping down as the company’s President and CEO and will transition to be Nokia Executive Vice President of Devices and Services in Microsoft.

In terms of its manpower, the companies’ press releases state that 32,000 people will be transferred across Microsoft, including around 4700 people in Finland and more than 18000 employees directly involved in product manufacturing.

Microsoft will also be in charge of Nokia’s Asha line of feature phones and will get a 10-year non-exclusive license to Nokia’s library of ideas and “reciprocal rights” to use Microsoft patents within its “HERE” mapping services.