Microsoft and Nokia announced today that Nokia’s Devices &
Services business; the part of the company that builds all Nokia’s
phones (both smart and otherwise) is changing hands. Microsoft is
paying €5.44 billion ($7.17 billion) for the struggling Nokia division.
The deal, subject to shareholder and regulatory approval, is expected
to close in the first quarter of 2014. In the transaction, all of
Nokia’s device business, including design, manufacturing, sales,
marketing, and support, becomes a part of Microsoft.
This includes 32,000 staff, of which 4,700 are in Finland. Remaining
behind is Nokia Solutions and Networks (formerly Nokia Siemens
Networks), which builds telecommunications equipment, and mapping
division. Nokia is also retaining its Advanced Technologies group,
which develops and licenses intellectual property.
These parts together, account for about half of Nokia’s revenue,
and approximately 24,000 staff.
The headline €5.44 billion figure is split €3.79 billion ($4.99 billion)
for Devices & Services, €1.65 billion ($2.17 billion) for a patent
agreement.
Under that agreement, Redmond is buying a ten year license to
Nokia’s patents, with an option to make the ten year agreement
perpetual.
Microsoft is also acquiring Nokia’s various licenses to patents from
Qualcomm, IBM, Motorola Mobility, and Motorola Solutions.
I sure do miss the Nokia 3310.....
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