Bombshell: Microsoft Finalizes Moves to Purchase Nokia's Devices Division
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Well, that didn't take long to happen. Back in 2011 when Nokia announced its plans to drop Symbian and Meego as its smartphone OSes and partner with Microsoft to stand behind Windows Phone, a lot of people said that it was Microsoft pulling the strings through Nokia's new CEO (and former Microsoft employee), Stephen Elop. Some even predicted that eventually business would go so badly that Nokia would eventually have to sell out to Microsoft and here we are two years later with the stunning news that Microsoft is concluding its plans to purchase Nokia's Devices and Services division for a whooping $7.17 Billion
. A deal that includes access to Nokia's extensive patent portfolio as well as ownership of the Lumia and Asha trademarks. By the time the deal is completed early 2014, Nokia's main businesses will be limited Network infrastructure, Mapping solutions and advanced technologies (R&D)
How did this come to be? Things weren't exactly going badly for Nokia. Sales of their Lumia handsets were finally beginning to pick up with Nokia being responsible for about to 80% of the sales of Windows Phone devices in the past year, and they were even beginning to turn a profit. So what led to this sudden sale? Are the conspiracy theorists right? Was this all part of Microsoft's evil plan to take its Mobile OS to the forefront of the smartphone wars by all means necessary? Only time will tell. One thing's for certain though, Microsoft has gotten a hold of some pretty serious firepower to help it improve its standing in the current smartphone wars. How it will use this tools however it up to whoever will take over the helm from Steve Ballmer who is set to resign from the CEO position within a years time. It is interesting to note that part of the deal for the purchase of Nokia's devices unit involves Stephen Elop stepping down as CEO of Nokia to become executive VP of devices and services at Microsoft. Rumors and speculation already point to him being the one to take over the reins of power when Ballmer finally leaves.
More interestingly, what will happen to the Asha brand of (almost-)smartphones? Will Microsoft leave them to continue along the path they're currently taking? Or will it try to shoehorn a low-cost version of Windows Phone onto that platform too?
Image Source: MyNokiaBlog
News Source: Microsoft
