Nokia have announced that they are selling ‘substantially all of its Devices & Services business and license its patents to Microsoft’. The $7.17 billion deal will be finalised in Q1 2014 subject to approval by Nokia shareholders and regulatory approvals. The two companies already work very closely in the mobile sector.
The deal means that 32,000 Nokia employees will move to Microsoft alongside Nokia’s CEO Stephen Elop and other top executives. Rumour has it that Elop is a prime option to replace Microsoft CEO Steve Ballmer when he retires within the next year.
Nokia used to be one of the major mobile players, but have struggled in recent years, losing marketshare to Apple and Android partners.
Kitguru says: A good move for both companies?