Editor’s Note: Related tickers: Microsoft Corporation (NASDAQ:MSFT), Nokia Corporation (ADR) (NYSE:NOK), Apple Inc. (NASDAQ:AAPL)
Nokia to sell handset business to Microsoft for $7.2 billion (Reuters)
Two years after hitching its fate to Microsoft Corporation (NASDAQ:MSFT)‘s Windows Phone software, a withered Nokia Corporation (ADR) (NYSE:NOK) collapsed into the arms of the U.S. software giant, agreeing to sell its main handset business for 5.44 billion euros ($7.2 billion). Nokia, which will continue as a maker of networking equipment and holder of patents, was once the world’s dominant handset manufacturer but was long since overtaken by Apple Inc. (NASDAQ:AAPL) and Samsung in the highly competitive market for more powerful smartphones. Nokia’s Canadian boss Stephen Elop, who ran Microsoft’s business software division before jumping to Nokia in 2010, will now return to the U.S. firm as head of its mobile devices business.
Microsoft’s Finnish data center plans, and other tidbits from the Nokia takeover call (Gigaom)
Microsoft and Nokia held a press conference on Tuesday morning to discuss Microsoft’s takeover of Nokia Corporation (ADR) (NYSE:NOK)’s phone hardware and services business. Naturally, several interesting details came out about the deal and its likely impact. The first came from Nokia’s interim CEO, Risto Siilasmaa (Stephen Elop is back off to Microsoft Corporation (NASDAQ:MSFT), and is in the running for Steve Ballmer’s job). Siilasmaa said the two companies had been mulling over the deal since February this year – and Microsoft was the suitor: …Continuing on that theme, outgoing Microsoft CEO Steve Ballmer insisted that the transferring business would stay in Finland, much as Skype has stayed anchored in Estonia.
Analysts applaud Microsoft’s purchase of Nokia device and mobile division but warn about future (ITProPortal)
Chris Millington, UK & Ireland MD at Doro summed up what was on the minds of many commentators this morning after Microsoft announced it had purchased Nokia’s mobile and business division for £3.2 billion. “My first reaction is wow – the mobile industry is capable of such incredible change. Whilst this news is not a surprise, it does mean that Microsoft Corporation (NASDAQ:MSFT) will now have the platform to deliver its mobile strategy. For business users specifically, this really does signal a significant opportunity – especially for Nokia Corporation (ADR) (NYSE:NOK)’s smartphone offering. However, does it mean the end of Nokia’s feature phone business? Will future product development and focus now shift to Microsoft-only smart devices?”
Five cool things that could happen from the Microsoft-Nokia deal (CNet)
The big news this week (besides the upcoming IFA tradeshow in Berlin) is Microsoft’s announcement that the company will pay US$7.2 billion for Nokia’s devices and services unit division (the fee includes payments for patent licensing). With this, Microsoft’s Windows Phone section becomes no longer just a licenser for its OEM partners. Instead, it now competes with them. Microsoft’s deal with Nokia will mean that current products will stay branded Nokia Corporation (ADR) (NYSE:NOK), but upcoming Lumia handsets (apart from the Asha feature phone set) will be branded as from Microsoft Corporation (NASDAQ:MSFT).
