Nokia now in the arms of Microsoft for 7.2 Billion Dollars

With an amazing stand it had as a “single dominating  player”  in mobile market for the 14 years until Samsung came into the picture and  took-over Nokia  in 2012, shaking the mobile market upside down, Nokia has finally been sold out to Microsoft in 7.2bn dollars. Of this 7.2bn dollars deal, it is said to be a split between the mobile devices unit- $5 bn  and Nokia patents worth $2.17 bn.

Nokia join hands with Microsoft. This deal will remodel the future of both the companies. The world’s largest software maker will now be putting a foot forward aggressively in hardware whereas Nokia pulling out of the mobile phones will be regarded mainly as a  wireless network equipment maker.

Accepting the facts, Nokia & Microsoft was very much affected by the iPhone and Android’s wave as both ignored the push in the technology. Now Microsoft taking over Nokia builds up the pressure for Microsoft to grow and compete on large scale.

“It’s a bold step into the future — a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. Microsoft has agreed a 10-year licensing arrangement with Nokia to use the Nokia brand on all the mobile phone products”, said Microsoft outgoing CEO Steve Ballmer.

The question that comes to mind is what will happen to the 32,000 employees of Nokia?  All the employees of Nokia will be absorbed by Microsoft and retain their position. Having said that,  Ballmer added,

“There are no significant plans to shift where work is done in the world as we integrate, so we expect the Nokia teams to stay largely in place, geographically.”

With this deal we wait to see where does the Microsoft takes the Nokia Mobile units as Microsoft  own mobile gadget, the Surface tablet, has sold moderately since it was launched last year.

Good Luck to Microsoft!!

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