“Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services.”
From the press release:
Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.
So, in other words, most of Nokia. Phones, mapping services and intellectual property.
Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing.
Heh heh. “synergies”.
For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.
Shareholders can cash out before the company officially shuts down.
“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.
Out-going chief executive officer. Remember, Ballmer got shitcanned last week.
“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.”
Nokia has made some great-looking phones, but they’ve not sold well. Windows Phone is vying with Blackberry for the number 3 spot in the market, and Nokia has been the only worthwhile partner they’ve had. Microsoft doesn’t have any other options at this point but to bring them inside.
“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, Nokia Interim CEO. “After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.”
Risto Siilasmaa, overseeing the takeover by Microsoft from the Nokia side.
“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.
Stephen Elop, abandoning the Nokia ship and heading back to Microsoft as a major executive shortly after Ballmer announced his (forced-) retirement.
For those who don’t see it yet…
Microsoft executive, Stephen Elop, goes on to become CEO of Nokia.
Nokia invests heavily in making Windows Phone, um, phones.
Microsoft CEO, Steve Ballmer, announces retirement in next 12 months.
Microsoft agrees to acquire Nokia’s Devices & Services division.
Nokia CEO steps down to become Nokia’s EVP of Devices & Services — the division being acquired by Microsoft.
Will the former Microsoft executive and Nokia CEO, Stephen Elop, become the next Microsoft CEO?
My money’s on “yes”. Ballmer has already ousted every other executive that had been groomed for the position (e.g., Ray Ozzie, Robbie Bach, J. Allard, and most recently, Steven Sinofsky).