Microsoft, Nokia set to redefine mobility
Global giant Microsoft has announced that it has reached an agreement to acquire the handset and services business of Nokia for nearly $7.1 billion. The companies have announced that 32,000 Nokia employees will join Microsoft as a result of the all-cash deal.According to sources, Stephen Elop, the chief executive of Nokia and a former Microsoft executive, will rejoin Microsoft. This will make him up a potential successor for Steven Ballmer, who announced his retirement as chief executive of Microsoft within 12 months and is looking for a potential successor.
The acquisition can help Microsoft venture aggressively in a mobile era, an area where it required a greater focus. Similarly, In an open letter Microsoft CEO Steve Ballmer announced: “Today marks a moment of reinvention. The deal Nokia and Microsoft have always dreamed big - we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we’ve come a long way toward realizing those dreams.”Similarly Finnish telecom giant Nokia, once the mightiest company in the mobile phone business, has been struggling to keep up with rivals Samsung and Apple as the industry shifted to the era of the smartphone.
“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,” Mr. Ballmer said in his statement. “In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”In a statement, Risto Siilasmaa, chairman of Nokia’s board and Nokia’s interim chief executive, said that “the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.
”The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions. After the deal closure Nokia Chief Executive Stephen Elop, will move to Microsoft Corp. Nokia board Chairman Risto Siilasmaa will take over CEO duties while the Finnish firm is looking for a new CEO.
Many in the industry are wondering with Microsoft taking over Nokia’s devices and services business, what will be the next step for the handset maker to keep ticking. It seems that the company hates to rest on its laurels. In a separate announcement, the company said that it is going to play on its existing strengths, continuing to develop its mapping and location services across different screens and operating systems thereby becoming a leading independent location cloud platform company.
A senior official of Nokia told CXOtoday that there will be more communications internally for greater clarity soon. The companies have several plans in the pipeline, bringing more choices, faster innovation, and even more exciting devices and services to our customers. As Ballmer mentions, “Together, we will redefine the boundaries of mobility.”
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