Here's some big news coming out this evening. We've known that Microsoft and Nokia have been in bed together for quite a while. Now news is coming out this evening that Microsoft will purchase "substantially" all of Nokia's device and service arms as well as licensing the phone maker's patents and mapping know-how. Nokia will be getting about $5 billion Euros. With about 1.65 billion Euros for the patent armory.
Microsoft is hoping that purchasing Nokia's Devices and service arm will help grow the Windows Phone platform. Microsoft is already promising "increased synergies". Steve Ballmer added "it's a bold step into the future, a win-win for employees, shareholders and consumers of both companies. 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."
According to Nokia and Microsoft, 32,000 people transferring to Microsoft. This includes about 4,700 people in Finland and 18,300 employees directly involved in product manufacture. Microsoft is also taking the Nokia's Asha range of feature phones. Patent-wise, Microsoft is purchasing 10-year non-exclusive license to its Finnish partner's library of ideas and "reciprocal rights" to use Microsoft patents within its HERE mapping service.
Now we do have the full presser from both Microsoft and Nokia. So this isn't just a speculation, rumor or a leak. But this is actually happening. Which is quite surprising. Especially surprising that it's happening now. So if you want to see the full breakdown of the deal, you'll want to check out the Nokia presser.
How many of you are surprised to see Microsoft purchasing part of Nokia right now? After how badly the Surface tablets worked out or Microsoft, I was quite surprised to see them purchasing Nokia. But then again, Nokia was only making phones for Microsoft and the Windows Phone 8 platform. So I guess it's not that big of a surprise. Anyways, let us know your thoughts in the comments below.