Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Microsoft Snaps Up Nokia Hardware, Services Unit in $7.1 Billion Deal

    By
    Pedro Hernandez
    -
    September 3, 2013
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Microsoft is acquiring Nokia’s Devices & Services business for 3.79 billion euros, or an estimated $5 billion, the companies announced late Monday, Sept. 2.

      The software giant is also paying Nokia 1.65 billion euros, or $2.1 billion, to license the Finnish device manufacturer’s patents and mapping technologies. Nokia will also assign to Microsoft its long-term patent licensing agreement with chip maker Qualcomm as part of the deal.

      In total, the all-cash deal is valued at $7.1 billion. The companies expect the transaction to close during the first quarter of 2014, pending Nokia shareholder and regulatory approvals. Nokia president and CEO Stephen Elop will transition to Microsoft as executive vice president of Nokia Devices & Services.

      The move comes a few months after rumors surfaced that the companies held advanced talks to sell Nokia’s device unit to Microsoft. Negotiations reportedly fell apart due to a failure to agree on a price. “Redmond, Wash.-based Microsoft eventually walked away from the deal in part because of the price and Nokia’s own strategic predicament—where it ranks as a trailing player to Apple and Samsung,” stated a June 19 report in The Wall Street Journal.

      Microsoft and Nokia seem to have settled on an agreeable figure. “After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders,” said Nokia’s chairman of the Board of Directors and newly appointed interim CEO, Risto Siilasmaa, in a statement.

      “Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space,” Siilasmaa said. Nokia will be “focused on enabling mobility through its leadership in networking, mapping & location, and advanced technologies,” Microsoft’s soon-to-retire CEO Steve Ballmer and Elop jointly stated in an open letter related to the acquisition.

      Referencing the massive Microsoft reorganization Ballmer announced last month, he described the move as “a bold step into the future and the next big phase of the transformation we announced on July 11,” in a separate email to staffers. He added that the deal is “a smart acquisition for Microsoft, and a good deal for both companies.”

      “We are receiving incredible talent, technology and IP. We’ve all seen the amazing work that Nokia and Microsoft have done together,” Ballmer said.

      “Microsoft will draw upon its overseas cash resources to fund the transaction,” the companies announced. According to the Journal report, Microsoft is sitting on a $66 billion offshore war chest.

      Nokia is Microsoft’s top Windows Phone partner and producer. In early 2011, the tech heavyweights, both struggling to catch up to Apple and Google in the mobile device market, announced an alliance where Windows Phone would essentially replace Symbian as Nokia’s smartphone operating system.

      Windows Phone shipments surpassed BlackBerry during the second quarter of 2013 to take the No. 3 spot behind Google Android and Apple iOS, according to IT market research firm IDG. Nokia shipped 81.6 percent of all Windows Phone smartphones during the period.

      During the same quarter, the Windows Phone-powered Nokia Lumia line experienced an encouraging 32 percent year-over-year uptick in sales (7.4 million units). Nonetheless, the company still racked up a $298 million in losses.

      Pedro Hernandez
      Pedro Hernandez is a contributor to eWEEK and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×