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Microsoft Buys Nokia's Mobile Business

Microsoft has bought Nokia's device and services businesses, as well as licensed its patents and mapping services, for $7.2 billion.

This move is just the latest in the pair's history with each other. Back in 2011, Nokia struck a deal with Microsoft to make Windows the primary OS in Nokia smartphones. This new deal not only means Microsoft will take over Nokia's Lumia brand of smartphones, but also the Asha brand, as well as acquire a 10-year, non-exclusive license to Nokia's patents.

As part of the deal, Stephen Elop, Nokia president and CEO, will become executive vice president of devices and services. If that sounds familiar, it's the position that was recently given to Julie Larson-Green when Microsoft reorganized itself in July. Once the deal closes, Elop will oversee Larson, who will continue to work on the Xbox One and Surface. Previously Elop was the head of Microsoft's business division before moving over to Nokia. Elop is now believed to be in line to replace Ballmer once he retires.

The sale will close in the first quarter of next year pending approval by Nokia's shareholders and regulatory consent.

 

Our Take:
Microsoft is desperate to boost its mobile business and get in on the two-horse race between Apple's mobile/tablet iOS and the Android operating system. Unfortunately, Nokia phones have faded from popularity. And no, I do not think this means that Microsoft will resurrect the N-Gage.

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