Microsoft Acquires Nokia

939 Words Nov 3rd, 2013 4 Pages
Microsoft is to acquire Nokia 's mobile phone arm in a swansong deal for the software giant 's long-serving chief executive, Steve Ballmer, delivering Europe 's last big handset maker into American ownership.
For €5.44bn (£4.6bn), Nokia is casting off the business that once represented Finland 's most important export, in a deal that will result in 32,000 staff transferring to Microsoft.
Overtaken in the smartphone arena by Apple and Samsung, Nokia 's board agreed to end the company 's decades-long role as a pioneer and once-dominant player in one of the most revolutionary technologies in modern history.
The acquisition marks the boldest step yet taken by Microsoft in its recently announced strategy of moving decisively
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Apple 's iPhone and handsets running Google 's Android together make up over 95% of sales in the US and China, the world 's two largest smartphone markets, according to Kantar World panel 's latest figures. Windows Phone only has shares above 10% in Mexico and France, according to the company 's figures.
According to the article, Under the deal, Microsoft is buying the Lumia and Asha brand names that Nokia has used for its smart and intermediate phones. It has licensed the use of the Nokia brand on handsets for 10 years, but the Finnish business will retain ownership of the brand. That will probably mean that the Nokia brand disappearing from handsets in the next decade, ending over 30 years ' history in the business.
Having started in 1865 with a pulp mill in the Finnish town of Tampere, Nokia reinvented itself repeatedly, shifting to rubber boot production early in the 20th century, and then making its first telephone exchange in the 1970s. Its first mobile phone appeared in 1981.
Rumours that Microsoft intended to buy Nokia had been floated since Elop joined the company. Reaction to the deal was mixed.
"Microsoft buying Nokia looks like doubling down on the current failing strategy, without changing the dynamics that are preventing success," cautioned Benedict Evans at Enders Analysis.
Ben Wood at CCS Insight described the deal as a "bold, but entirely necessary gamble by Microsoft".
"Mobile needs to be a
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