Microsoft Completes $7 Billion Purchase of Nokia Devices and Services

Microsoft Completes $7 Billion Purchase of Nokia Devices and Services

stephen elop nokia

$7.2 billion goes to Nokia, and Microsoft gets patent licensing, 25,000 new employees in return.

Seven months and billions of dollars later, Microsoft's acquisition of Nokia's Devices and Services division is finally complete.

The deal, announced in September 2013, sees Microsoft paying Nokia about $7.2 billion. Most of the cash covers the purchase, while about $2 billion covers fees for patents Microsoft will be licensing from Nokia.

Microsoft is responsible for about 90 percent of all Windows Phone smartphones in production (the Lumia line from Nokia), along with several other Nokia product lines. While plans might change in the future, Microsoft will be carrying on with Nokia's low-end Asha line of devices, along with the Android-ish Nokia X smartphones.

"As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer," said Stephen Elop, former Nokia CEO and current Microsoft Executive Vice President, Devices & Services. "Together, we can connect and empower people with one experience for everything in their life in a world where it is mobile first and cloud first."

The acquisition makes Microsoft a sizable hardware manufacturer, a space the software giant isn't exactly used to (Xbox aside). With more direct control over a large swath of Windows Phone hardware, the future of Windows Phone is about to take a dramatic turn...for better or for worse.

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Wow, Microsoft must really want people to use Windows Phone.

...Now they just need people to want to use Windows Phone, currently in competition with Blackberry to keep its coveted position of "distant third" in U.S. markets.

I'm guessing the wonks who were calling for Microsoft to sell off the XBox division aren't going to be too keen on this.

Callate:

...Now they just need people to want to use Windows Phone, currently in competition with Blackberry to keep its coveted position of "distant third" in U.S. markets.

i was going to comment something along the lines of "wow blackberry is still alive?" but then i looked at your link and its at 2%, so yeah, very distant third.

Wow, that's a lot of money for a dying company.

As always in the mobile phone industry, it's just going to be for those PATENTS PATENTS PATENTS.

It was the same with google buying Motorola, remember that? That didn't stay long did it?, and I wouldn't be surprised if it was all the same goings on here.

I guess Nokia has the manufacturing assets to offer to Microsoft, on top of the patents? Maybe that is the difference.

Looks like another step towards apple's business model: making their phones in house will give microsoft better control over the process. Maybe this way it won't take an extra three months after release for OS updates to actually reach consumers. Don't get me wrong, I love my windows phone and wouldn't dream of switching to anything else at this point (especially since the 8.1 version of the OS fixes just about every problem I have with it).

Hopefully this acquisition will mean good things like lower prices and faster development/patch turnaround times. If it goes bad, microsoft will essentially force themselves out of the market with exorbitant prices and the same heavy-handed tactics that hampered the phone platform in the first place (an example being that they didn't have bluetooth keyboard support to try and force people into buying the tablet). I'm hoping for good things as I'd like to keep using a windows phone in the future (and before anyone accuses me of being a fanboy: I hate Windows 8 on anything other than a phone and refuse to buy the new xbone).

Ubiquitous Duck:
Wow, that's a lot of money for a dying company.

As always in the mobile phone industry, it's just going to be for those PATENTS PATENTS PATENTS.

It was the same with google buying Motorola, remember that? That didn't stay long did it?, and I wouldn't be surprised if it was all the same goings on here.

I guess Nokia has the manufacturing assets to offer to Microsoft, on top of the patents? Maybe that is the difference.

Microsoft really isn't a dying company. They are reshifting their core business (desktop OS) but their Cloud business is skyrocketing. They are in a price war with Amazon EC2 and Google on the Cloud, which is good for the market. Their OS is still rather strong in the professional environment because their tools are pretty good, although the fact that many of their technology has been reverse engineered and now has open source/free alternatives (that are fully compatible) that may decrease in the future. It'll come down to support costs.

Nokia has great phone hardware. Their phones are still more resilient than Samsung's and more on-part with the sturdiness of an iPhone (probably tougher even). For a smartphone that's not an easy feat.

Furism:

Ubiquitous Duck:
Wow, that's a lot of money for a dying company.

As always in the mobile phone industry, it's just going to be for those PATENTS PATENTS PATENTS.

It was the same with google buying Motorola, remember that? That didn't stay long did it?, and I wouldn't be surprised if it was all the same goings on here.

I guess Nokia has the manufacturing assets to offer to Microsoft, on top of the patents? Maybe that is the difference.

Microsoft really isn't a dying company. They are reshifting their core business (desktop OS) but their Cloud business is skyrocketing. They are in a price war with Amazon EC2 and Google on the Cloud, which is good for the market. Their OS is still rather strong in the professional environment because their tools are pretty good, although the fact that many of their technology has been reverse engineered and now has open source/free alternatives (that are fully compatible) that may decrease in the future. It'll come down to support costs.

Nokia has great phone hardware. Their phones are still more resilient than Samsung's and more on-part with the sturdiness of an iPhone (probably tougher even). For a smartphone that's not an easy feat.

I was referring to the purchase of Nokia as the purchase of a dying company. As in, that's a high price tag for a not-great company.

Its price is inflated by its patents.

That is what I was referring to really. The mobile phone industry is just a market of patents, that's where the majority of your ammo and value lie; even if you aren't doing very well as a company, can still have value and still sue people!

 

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