Microsoft buys Nokia’s Smartphone business!


An official joint letter from Microsoft CEO Steve Ballmer and Nokia CEO Stephen Elop has been posted on the official Microsoft Blog confirming the Nokia’s Devices & Services business acquisition by Microsoft.

Microsoft will have to spend $7.2 billion once Nokia’s shareholders and regulatory bodies/agencies pass the decision. The $7.2 billion acquisition was exactly spent on the mobile devices unit and Nokia’s patent portfolio with the 3.79 billion Euros being spent on the mobile devices unit and 1.65 billion spent on Nokia’s patents.

Much as Nokia has been bought by Microsoft, Nokia will continue building maps and location-based services, creating cellular networking equipment and continue making technology outside of the mobile devices unit.

Microsoft CEO Steve Ballmer stated that Nokia CEO Stephen Elop, the current CEO of Nokia, will be returning to Microsoft to manage the entire devices team.

However, Microsoft’s acquisition of Nokia doesn’t mean other manufacturers won’t be able to manufacturer Windows Phones. Other manufacturers will continue to manufacture Windows powered smart phones.

Microsoft Vice President Terry Myerson also posted a blog post saying they will continue to license usage rights of the Windows Phone platform to other companies.

Now some fans’ dream of android on a Nokia phone just got buried. However this move will be very important in Microsoft’s competition against iOS and Android.