Nokia agrees to sell its main handset business to Microsoft
Agreement reached for 5.44 billion Euros, or $7.2 billion
Nokia has duly noted the superiority of software giant Microsoft and has agreed to sell its main handset business for 5.44 billion Euros, or $7.2 billion. The agreement comes two years after linking itself to Microsoft's Windows Phone software.
Nokia spent more than a century making tires, boots or cables before producing the first handheld mobile phone, the Mobira Cityman, in 1987.
Nokia CEO Stephen Elop, who was hired away from Microsoft by the Finnish company in 2010, will rejoin Microsoft after the deal is completed, the companies said.
Both Nokia and Microsoft have attempted joint progress in the Smartphone market as part of a partnership forged in 2011. Nokia's Lumia Smartphones have run on Microsoft's Windows software, but those devices haven't emerged as competition to the iPhone or an array of Android-powered devices spearheaded by Samsung Electronics' Smartphone's and tablets.
Microsoft assumes that it will have a better chance of narrowing the gap if it seizes complete control over how the mobile devices work with its Windows software.
Microsoft CEO Steve Ballmer said the deal will bring Nokia's capabilities in hardware design, engineering, manufacturing, sales, marketing and distribution to Microsoft.
"For Microsoft, this transaction is the key next step in furthering the company's transition to a devices and services company," Ballmer said in a joint news release from the two companies read.
Nokia is still the world's No. 2 mobile phone maker behind Samsung. However, it is not in the top five in the much more lucrative and faster-growing Smartphone market.
Nokia, which had a 40 percent share of the handset market in 2007, now has a paltry 15 percent market share, with an even smaller three percent share in Smartphone's, Reuters reported.
Expected to be finalized in early 2014, about 32,000 Nokia employees will transfer to Microsoft. Nokia Chairman Risto Siilasmaa will take over CEO duties while the Espoo, Finland-based company looks for a new CEO.
Ballmer surprised the technology world August 23 by announcing he would step down as CEO of Redmond, Washington-based Microsoft within 12 months. His tenure included the software giant's declining dominance and struggles to keep pace with its competitors.
Named in 1871 after the Nokianvirta River where mining engineer Fredrik Idestam set up his second paper mill, Nokia spent more than a century making tires, boots or cables before producing the first handheld mobile phone, the Mobira Cityman, in 1987.
© 2013, Distributed by NEWS CONSORTIUM.
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
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