Microsoft to acquire Nokia's devices & services business for around $5 billion Euros

[snowComet]

It is confirmed, that Microsoft will acquire Nokia's devices & services business for around $5 billion Euros. 

 

http://www.engadget.com/2013/09/02/microsoft-will-acquire-nokias-devices-and-services-business/

 

 

ZDnet's article listed out several key facts of this deal.

 

 

 

• The deal is split between the phone-making unit and Nokia's patents. Microsoft will spend $5 billion (€3.79bn) on the phone-making unit, and $2.17 billion (€1.65bn) on licensing Nokia's patents.

• 32,000 Nokia employees will transfer to Microsoft, including 4,700 people in Finland.

• Nokia sold 7.4 million Lumia smartphones in the second quarter of 2013.

• Nokia chief executive Stephen Elop, who previously served as an executive at Microsoft, will once again join the software giant, heading up the phone-making division that Microsoft just bought.

• Microsoft's Julie Larson-Green, currently in charge of the company's own devices and studios team, will continue to work on the Xbox One and Surface devices, but will join Elop's team once the deal closes.

• All Microsoft and Nokia global marketing will fall under current executives Tami Reller and Mark Penn.

• During that same quarter, Microsoft sold 53.7 million units of its feature phone range.

• Nokia will retain its patent portfolio, but will give Microsoft a 10-year license to its patents at the time of the deal closing.

• Microsoft will make available to Nokia about €1.5 billion ($1.97bn) in financing in the form of three payments of €500 million ($659m) from oversees resources.

• Nokia shareholders are expected to vote on the deal in an extraordinary general meeting on November 19 this year.

• Microsoft will build a datacenter in Finland that will serve Microsoft and Nokia customers in Europe. More than $750 million in capital will be spent on the new datacenter over the next few years.

 

http://www.zdnet.com/microsoft-nokia-deal-quick-facts-7000020146/

 

[Morpheus]

say whaatttt?

[Lyons]

And now they will never escape the clutches of Windows phone like they (and others) wanted to. Too bad...

[EChondo]

It's all for the patents, they could care less about Nokia.

[Anult]

Poor Nokia. How the mighty have fallen.

 

We are never gonna see a Android phone made by Nokia now.

[pit5000]

it's not 5 billion, more like $7billion

[snowComet]

it's not 5 billion, more like $7billion

it is 5 billion, in Euros, so it is around $7 billion in USD. I will change the title. Thx for reminding me.

[Wendriel]

I just popped on gizmodo and saw this,

 

http://gizmodo.com/breaking-microsoft-is-buying-nokias-phones-business-1243005211

 

I think this is interesting considering nokia's saving grace was that their windows phones have been getting better and better.  My Fiance got the 1020 two weeks ago and i upgraded to an HTC one.  We both had iphone 4's and are both really happy with our choices, and though i love my new phone and totally got it partially off of Linus's recommendation, I am continually being impressed by her lumia and its semi-ridiculous camera.

 

original source 

 

http://blogs.technet.com/b/microsoft_blog/archive/2013/09/02/the-next-chapter-an-open-letter-from-steve-ballmer-and-stephen-elop.aspx

[Raj8396]

Oh i am so sad  I love Nokia, Microsoft better not screw this one up.

[Giddyguy]

Maybe MS will merge the Surface and Lumia line together?

[Imaginaerum]

edit: urgh, I need to stop surfing the web after midnight.

 

Maybe Microsoft can make Windows as indestructible as an old Nokia now.

[snowComet]

edit: urgh, I need to stop surfing the web after midnight.

 

Maybe Microsoft can make Windows as indestructible as an old Nokia now.

I got conflicted reports on this, between 5 billions or 7 billions, USD or Euros. But it seems more reports are cling to 7 billion dollars....

[Imaginaerum]

It's $7 if you add the business and the patents and $5 if you don't, I was reading it as if you don't. American dollars, obviously. It's 5 billion Euros added and around 3 not added. I think you're right now, I'm just tired.

[snowComet]

It's $7 if you add the business and the patents and $5 if you don't, I was reading it as if you don't. American dollars, obviously. It's 5 billion Euros added and around 3 not added. I think you're right now, I'm just tired.

I know, i had read Microsoft's press release. Thx for reminding me.

[_Vigo_]

This is  really unexpected.

[Ramzez]

You should see the news topics here in Finland where Nokia's headquarters are. People are going mad. :lol:

 

The worst fears are obviously the possibility Nokia leaving Finland altogether. This would mean thousands of people would loose their job and the state would loose a lot of tax income. The direct and indirect influences are huge.

[Ramzez]

Some news topics translated from finnish to english:

 

 

Stephen Elop leaves his spot as a chairman, Risto Silasmaa takes his place for now.

 

 

Risto Silasmaa: The most difficult decision of my life.

 

 

Prime minister of Finland (Jyrki Katainen): Without change, Nokia wouldn't have survived.

 

- the goverment heard from Nokia's aqquirement just last night.

 

 

Terms of the deal: Nokia cannot use "Nokia" brand until 2016.

 

 

Stephen Elop: I'm sad, but it was the right decision

 

 

Nokia's stock has skyrocketed, +38 % in Helsinki's stock exchange.

[GhettoUnboxings]

This must suck for MS, since design is one of the only thing that kept customers coming to Nokia.

 

 

 

 

Nokia's Senior Vice President for Design, Marko Ahtisaari, has announced he will be leaving the company following its takeover by Microsoft. 

Ahtisaari will be leaving to pursue "entrepreneurial opportunities" and will be replaced by Stefan Pannenbecker. The announcement comes on the same day that Microsoft revealed it will be buying the mobile phone division of Nokia for €5.44 billion (£4.6bn).

http://www.bit-tech.net/news/hardware/2013/09/03/nokia-designer-marko-ahtisaari-leave-micros/1?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+bit-tech%2Fall+%28bit-tech.net+feed%29

[Nicktrance]

Well, for everyone who was still dreaming about a Nokia android phone when Nokia gave up on WP, this definitely crushes their dreams :lol:.

 

I however don't think this is just about patents. This is more about Microsoft turning Nokia into a 1st party company so the Microsoft software and Nokia hardware teams work together more seamlessly to create Microsoft hardware with Microsoft software (although they will probably use Nokia because it's a brand more people would feel comfortable trusting).

[TopWargamer]

Well then...that was unexpected...

[Ramzez]

The deal is very interesting. Nokia only sells its mobile business, but not the other parts like the networking side. Also Nokia licenses its patents for Microsoft but doesn't sell them. The terms of the deal also include that Nokia cannot build new mobile devices until 2016.

 

This is very unlikely to happen, but this could be a really massive opportunity for Nokia. They have the next three years to plan ahead something new. Is it new mobile devices or something different altogether? I don't know, but the pressure has been relieved and Nokia has the chance to develop new technologies all by itself without having the need to bring something new to the market all the time. This was the biggest issue with Lumia phones. They weren't as good as they could have been because Nokia was in a hurry to bring something to the market. Now that hurry is gone.

[Jozi]

When I first heard about this this morning I was just like this ->

[Treyu]

Skype was more expensive than Nokia. 8,5 > 7 billion US$. 

[Gunzkewl]

Can someone explain me this (Nokia itself is barred from using the Nokia brand on any mobile devices at all until December 31st, 2015.) 

If they make a new cellphone under the brand of Nokia in 2016 it belongs to Microsoft?

[Ramzez]

Can someone explain me this (Nokia itself is barred from using the Nokia brand on any mobile devices at all until December 31st, 2015.) 

If they make a new cellphone under the brand of Nokia in 2016 it belongs to Microsoft?

 

Nokia cannot make any mobile devices until 2016. After that they can resume manufacturing mobile phones if they want. However this is unlikely, because all of the R&D is sold to the Microsoft. Nokia still keeps all the patents and the right to use Nokia brand. Microsoft is only allowed to sell current Nokia phones as called Nokia, but after that they have to change the name. So Microsoft is not going to release new devices called as Nokia.