Monday, September 01, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Asus ZenWatch To Have Voice Control Features
Miraisens Showcases Touchable 3D Tech
Nintendo's Figurines Coming Later This Year
ASUS and G.Skill Take Overclocking Records
Korean Researchers Advance Synthesis Process for Graphene Quantum Dots
LG Display Opens LCD Panel Plant in China
Apple Said to Work With Visa, MasterCard on IPhone Wallet
China Gives Microsoft Deadline To Respond To Anti-trust Probe
Active Discussions
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 Home > News > Mobiles > Microso...
Last 7 Days News : SU MO TU WE TH FR SA All News

Tuesday, September 03, 2013
Microsoft Buys Nokia's Handset Business, Patents


Microsoft and Nokia 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.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia's Devices & Services business, and EUR 1.65 billion to license Nokia's patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia?s shareholders, regulatory approvals and other closing conditions.

Building on the partnership with Nokia announced in February 2011 and the success of Nokia's Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices. 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 businesses.

"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."

"We are excited and honored to be bringing Nokia's incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution," Ballmer said. "With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders."

"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."

"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."

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 a 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 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.

Nokia's boss Stephen Elop, who ran Microsoft's business software division before jumping to Nokia in 2010, will now return to the U.S. firm as head of its mobile devices business.

He is being discussed as a possible replacement for Microsoft's retiring CEO Steve Ballmer, who is trying to remake the U.S. firm into a gadget and services company like Apple before he departs, after disastrous attempts so far to compete in mobile devices.

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.


Previous
Next
ARM Buys Advanced Display Technology from Cadence        All News        Verizon To Acquire Vodafone's 45 Percent Interest In Verizon Wireless For $130 Billion
HTC Announces Desire 300, 601, BoomBass, and blue Ones At IFA     Mobiles News      Verizon To Acquire Vodafone's 45 Percent Interest In Verizon Wireless For $130 Billion

Get RSS feed Easy Print E-Mail this Message

Related News
China Gives Microsoft Deadline To Respond To Anti-trust Probe
China Probes Microsoft Over Web Browser And Media Player
Nokia Networks Completes Acquisition of SAC Wireless
FCC Filing Hints At a Microsoft Rival To Chromecast
Microsoft to Announce Windows 9 on September Event: report
Samsung, Microsoft Want To End Android Patent Dispute Soon
Sony, Huawei, Microsoft To Announce New Smartphones at 2014 IFA
Microsoft Releases 19-euro Music Phone
Microsoft Sues Samsung Over Royalty Payments
Microsoft Releases New Limited Edition Wireless Mobile Mouse 3500 With Master Chief from Halo
Nokia Networks to buy Part of Panasonic's Wireless Network Business
Microsoft Details Windows Phone 8.1 Update, Brings Cortana To New Markets

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .