Both Microsoft and Nokia have recently announced that Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services. This will put Microsoft in full control of the Lumia brand and have its own in-house mobile devices teams!
Quoted by Steve Ballmer (Microsoft CEO):
“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…
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.”
Under the terms of the agreement, Microsoft will pay 3.79 billion Euro’s to purchase substantially all of Nokia’s Devices & Services business, and an extra 1.65 billion Euro’s to license Nokia’s patents, for a total transaction price of 5.44 billion Euro’s in cash! Microsoft will draw upon its overseas cash resources to fund the transaction which is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.
I wonder how long it will be before an Xbox branded phone hits the market?