Microsoft has announced its intentions to purchase the mobile division of Nokia.
In a presentation titled "Accelerating Growth," Microsoft confirmed it will buy Nokia's phone business for $7.2 billion.
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"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," said Microsoft Chief Executive Officer Steve Ballmer in a statement. "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's relationship with Nokia has been well documented since 2011 when it launched the first Nokia Windows Phone with the Lumia 800. The Microsoft-Nokia partnership continues in 2013 with the recent launch of the Lumia 1020.
According to Nokia's Board of Directors Chairman Risto Siilasmaa, the acquisition marks an important moment of reinvention for financial strength and enhancing shareholder value.
With the move, Siilasmaa becomes Nokia's interim CEO while Nokia's President and current CEO Stephen Elop transitions to Executive Vice President of Devices and Services.
In addition to acquiring Nokia's phone business, Microsoft is also seeking to add Nokia's Qualcomm and its key IP licenses, patents for all Microsoft products and the ability to use Nokia HERE, to name a few.
"Building on our successful partnership, we can now bring together the best of Microsoft's software engineering with the best of Nokia's product engineering, award-winning design, and global sales, marketing and manufacturing," said Elop. "With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products."
"We are excited and honored to be bringing Nokia's incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution," added Ballmer.
According to Microsoft, the deal is projected to be approved by early 2014 from Brazil, Canada, China, European Union, India and the United States, to name a few. The approval will also go through Nokia's shareholders as approximately 32,000 people are expected to transfer to Microsoft.
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