This is one piece of news that I never thought I would hear. Microsoft has acquired Nokia’s mobile phone business (devices and services) for a $7.2 billion (£4.6bn or €5.44bn) deal. Not only that, Microsoft will also own all of Nokia’s patents. Nokia’s chief executive, Stephen Elop stepped down from the board and is all set to become the head of devices division once the transfer is complete. The purchase is expected to be completed in the first quarter of 2014 and around 32,000 employees will be transferred to Microsoft. The stock market was abuzz with the news of the buy, Nokia’s stock jumped by 35% on the news whereas Microsoft’s stock feel more than 5%.
For those of you wondering: No this deal does not mean the end of Nokia. Nokia has quite a few other divisions which will still work independently (did you know that Nokia started off as a paper mill and used to make Paper, Galoshes and Gas masks?). This deal finally gives Microsoft a hardware partner, similar to Google’s acquisition of Motorola. But while Motorola was practically in the dump when it was bought, Nokia is in a much better position and with just the right push and a few changes; it can easily become a top competitor again. Microsoft is trying its best to put its mark on the mobile market, but will it be enough?
Will this deal help make Nokia the dominant force in the market as it once was? Or will it just be another failed attempt at a resurrection of a company that seems to be heading for the dump? The partnership with Microsoft, started in 2011, has helped Nokia come out with some incredibly amazing devices like the Lumia 920 and the Lumia 1020. But will the acquisition of Nokia benefit either of these companies? What do you guys think? If you have any comments about the article or would just like to express your views, our comments section is always open. Until we meet again!