Microsoft to buy Nokia's mobile phone division in £4.6bn deal

3 Sep 2013

Microsoft has agreed buy Nokia's mobile phone business for €5.4bn (£4.6bn). As part of the deal, announced this morning, Nokia will also license its patents and mapping services to Microsoft. Nokia shares jumped 45 per cent on news of the deal.

The deal is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft.

Nokia has struggled in the mobile market against tough competition from Samsung and Apple, while Microsoft has been criticised for being slow to respond to the explosive growth in smartphone and tablet sales.

Last year Microsoft launched its Surface tablet, but it has had limited success.

"It's a bold step into the future – a win-win for employees, shareholders and consumers of both companies," Steve Ballmer, chief executive of Microsoft, said in a statement.

The sale is subject to approval by Nokia shareholders and regulators.

By Andy Clough

 

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Comments

so Nokia, which was struggling to get a decent market share in the smartphone world because it clings to the Microsoft OS, has been bought by Microsoft (which is struggling in the tablet world because it's offering and OS isn't so good).

In other news, Blackberry/RIM has bought the exclusive rights to operate minidisc, betamax and 8track.

So Elop 'leaves' Microsoft, joins Nokia, Nokia dumps its own OS in favour of Microsoft, Microsoft buys Nokia, Elop goes back to Microsoft.

Bet no-one saw that one coming three years ago. Well, no-one apart from just about every employee of Nokia at the time, that is.

Good to hear 32,000 Nokia staff will transfer to Microsoft: shame about the tens of thousands, and entire divisions, lost as part of the Elop adventure, though.