Microsoft buys Nokia's devices and services for $7.2 billion
Nokia now officially falls under Microsoft's umbrella.
Microsoft and Nokia announced that Microsoft had purchased Nokia's smartphone and cellular handset business. This deal, which cost Microsoft $7.2 billion, looks to set up Nokia as the engine for Microsoft's mobile efforts. 32,000 of Nokia's employees will join Microsoft. Microsoft is paying $5 billion to buy Nokia's Devices & Services unit and $2.2 billion to license Nokia's patents.
"Nokia and Microsoft have always dreamed big," Microsoft's chief executive Steven A. Ballmer and Nokia chief Stephen Elop say in a blog post. "We dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we've come a long way toward realizing those dreams. Today marks a moment of reinvention."
Nokia's grasp on the mobile market has been slipping over the year. It is no longer among the top five makers of smartphones, though it is the second-largest shipper of cell phones worldwide. That's due in large part to Nokia's production of lower-end phones, which are becoming less and less popular in a smartphone-dominated culture.
Don't think that the name "Nokia" will disappear due to this buyout, though. The Finnish company licensed the brand's name to Microsoft, and it will be used on the mobile phones they create for the next decade, The New York Times reports.