Nokia's cellphone business becomes Microsoft's baby
Giant software developer Microsoft has bought mobile handset business of Nokia in a deal worth $7 billion USD. Nokia, once the market leader is struggling to revive its cellphone business after Samsung and Apple acquire a major share of the handset market.
As part of the deal 32,000 Nokia employees including CEO Stephen Elop,, will be transferred to the Microsoft
, according to the various media reports. Elop is among the top contenders for the post of Microsoft's chief executive as the incumbent chief Steve Ballmer is set to retire.
Commenting over the deal Steve Ballmer said in a statement that it's a bold step into the future - a win-win for employees, shareholders and consumers of both companies.
By the first quarter of 2014 the Microsoft-Nokia deal is expected to close and will be subjectexd to approval by Nokia's shareholders and regulatory approvals.
In 2011 Nokia partnered with Microsoft to use Windows software to run its mobile phones. In 2007 Nokia's share in world's mobile handset market was somewhere near 40%. However, presently the Finnish company has a market share of just 15%, with only a 3% share in smartphones.
After selling its cellphone business, Nokia will continue to concentrate on making networking equipments. Under the deal Nokia will also license its patents and mapping services to Microsoft.