Nokia's Mobile Arm Snapped Up by Microsoft

Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer
Nokia CEO Stephen Elop and Microsoft CEO Steve Ballmer

Over the last few weeks there has been a lot of talk about smartphone manufacturer BlackBerry being back on the market and looking for buyers, but in a surprise move that was not foreshadowed by any leaks it is Nokia and Microsoft that have come together in a  3.2 billion deal.

Nokia has not become a subsidiary of Microsoft in totality, but rather its devices and services divisions, which basically make up the parts of the company which work on mobile phones, are now part of the US software giant’s family. Microsoft has also spent  1.4 billion to license the patents that are still owned by Nokia, making this a very significant motion indeed.

There had, of course, been rumours about such an agreement being reached, particularly given that Nokia signed on to use Windows Phone a couple of years ago. However, its finalisation, which is likely to take place in early 2014, will represent a major shift in the mobile industry. 32,000 of Nokia’s staff will join Microsoft and executives hope that this will help both companies to experience significant growth, which means that they are expecting to sell even more smartphones.

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