rkt.india Posted September 3, 2013 Posted September 3, 2013 Nokia today announced that Microsoft will be acquiring substantially all of Nokia’s devices and services business for $5 billion. Microsoft will also license Nokia’s patents and mapping assets for another $2.17 billion making the complete deal worth $7.17 billion in cash. “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,†said Steve Ballmer, Microsoft chief executive officer. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.†“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 Stephen Elop, who following today’s announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services. “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.†The deal, which is expected to close in the first quarter of 2014, will be a step further into Microsoft’s new direction of becoming a devices and services company. The transition comes at an interesting time with Ballmer retiring within the next 12 months and the search for a new CEO is currently underway. Coincidentally, Elop, who will join Microsoft after the deal is closed along with Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, is being billed as one of the potential successors to Ballmer. Apart from the smartphone business, Microsoft will also acquire Nokia’s mobile phone business, which includes the Asha series as well its low-cost feature phones. While nothing is being said at the moment, we expect Microsoft will shut down or spin off this part of business, which ironically also provides the maximum sales and revenues for Nokia’s phone business. From the press release… TERMS OF THE AGREEMENT Under the terms of the agreement, Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services-related production facilities, Devices & Services-related sales and marketing activities, and related support functions. At closing, approximately 32,000 people are expected to transfer to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide. The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50 percent of Nokia’s net sales for the full year 2012. Microsoft is acquiring Nokia’s Smart Devices business unit, including the Lumia brand and products. Lumia handsets have won numerous awards and have grown in sales in each of the last three quarters, with sales reaching 7.4 million units in the second quarter of 2013. As part of the transaction, Nokia is assigning to Microsoft its long-term patent licensing agreement with Qualcomm, as well as other licensing agreements. Microsoft is also acquiring Nokia’s Mobile Phones business unit, which serves hundreds of millions of customers worldwide, and had sales of 53.7 million units in the second quarter of 2013. Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand. This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an on-ramp to Windows Phone. Nokia will retain its patent portfolio and will grant Microsoft a 10-year non-exclusive license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement in perpetuity. In addition, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four-year license. Microsoft will also immediately make available to Nokia EUR 1.5 billion of financing in the form of three EUR 500 million tranches of convertible notes that Microsoft would fund from overseas resources. If Nokia decides to draw down on this financing option, Nokia would pay back these notes to Microsoft from the proceeds of the deal upon closing. The financing is not conditional on the transaction closing. Microsoft also announced that it has selected Finland as the home for a new data center that will serve Microsoft consumers in Europe. The company said it would invest more than a quarter-billion dollars in capital and operation of the new data center over the next few years, with the potential for further expansion over time. http://www.dnaindia.com/scitech/1883648/report-microsoft-buys-nokia-s-devices-and-services-business-for-5-billion
rkt.india Posted September 3, 2013 Author Posted September 3, 2013 If only somebody buys RIM ...:angelic: Someone will. There were rumours of Lenovo acquiring it, some time back.
Crookbond Posted September 3, 2013 Posted September 3, 2013 Predicted this 1.5 years back. :winky: http://www.indiancricketfans.com/showpost.php?p=2034631&postcount=236 To put this in context, Microsoft bought Nokia for lesser than what they acquired Skype. :hehe:
IKnowU Posted September 3, 2013 Posted September 3, 2013 Predicted this 1.5 years back. :winky: http://www.indiancricketfans.com/showpost.php?p=2034631&postcount=236 To put this in context, Microsoft bought Nokia for lesser than what they acquired Skype. :hehe: MS only bought partial(although major) part of Nokia, not all of it.
Crookbond Posted September 3, 2013 Posted September 3, 2013 MS only bought partial(although major) part of Nokia' date=' not all of it.[/quote'] Yes - Nokia Mobile Division. Nokia was worth 245B USD in 2003.
hhunaeh Posted September 3, 2013 Posted September 3, 2013 What does this mean for all the cheap phones nokia makes in india?
rkt.india Posted September 3, 2013 Author Posted September 3, 2013 MS only bought partial(although major) part of Nokia' date=' not all of it.[/quote'] Patents are still with Nokia. Nokia will still market the brand.
rkt.india Posted September 3, 2013 Author Posted September 3, 2013 Yes - Nokia Mobile Division. Nokia was worth 245B USD in 2003. Nokia will retain its patent portfolio and will grant Microsoft a 10-year non-exclusive license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement in perpetuity. This is what the costliest part.
Crookbond Posted September 3, 2013 Posted September 3, 2013 Patents are still with Nokia. Nokia will still market the brand. Microsoft has licensed the patents for 10 years.
randomGuy Posted September 3, 2013 Posted September 3, 2013 Android killed companies like blackberry and nokia. Nokia woke up to reality far too late, kept on using symbion, didn't come out with android phones, didnt tie up with google or MS for too long. Paid the price via its devaluation.
Detonator Posted September 3, 2013 Posted September 3, 2013 ^ Android will gradually fade away, unless they lift some new concepts from IOS7. :giggle:
StriKe Posted September 3, 2013 Posted September 3, 2013 ^ Android will gradually fade away' date=' unless they lift some new concepts from IOS7. :giggle:[/quote'] What are those concepts does android need from IOS7?
CG Posted September 3, 2013 Posted September 3, 2013 What are those concepts does android need from IOS7? Actually ios7 does well to copy the flat design from ahem ahem.
Old guy Posted September 3, 2013 Posted September 3, 2013 ^ Android will gradually fade away' date=' unless they lift some new concepts from IOS7. :giggle:[/quote'] Why do u always troll without knowing anything ? Sent from my HTC One using Tapatalk 4
Old guy Posted September 3, 2013 Posted September 3, 2013 What are those concepts does android need from IOS7? Quick settings ..moving wall papers ...oh wait we had those for more than 3 years Sent from my HTC One using Tapatalk 4
StriKe Posted September 3, 2013 Posted September 3, 2013 ^Agree Android not going to fade away in anyway @OP I think it's a good move for Nokia :hmmm:
Detonator Posted September 3, 2013 Posted September 3, 2013 What are those concepts does android need from IOS7? Actually ios7 does well to copy the flat design from ahem ahem. Quick settings ..moving wall papers ...oh wait we had those for more than 3 years Sent from my HTC One using Tapatalk 4 Droidos never failed to amuse me :hysterical: :hysterical: The entire template and basic design of android is a flat copy of IOS :giggle: They just took original iphone's IOS looks, then turned it into android. Almost every popular app and games are originally developed for iphone, then aindroid will release it for free in playstore (or blackmarket), with ads :haha: and now the "developers" jumping up and down saying that IOS copied a phone interface, which is already an outright stealing from original IOS. ever seen the android design before iphone's release? A total laughstock :hehe:
StriKe Posted September 3, 2013 Posted September 3, 2013 Have it your way - Android copied 99.9% for IOS since birth, Now tell me how android going to fade away in future?
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