10 | Business World Magazine |
Aug/Sep 2013
“Yes”
to
Nokia
In a deal valued at more than $7 billion, Microsoft
Corporation has announced it will purchase sub-
stantially all of Nokia’s Devices & Services business,
patents and licenses relative to Nokia’s mapping ser-
vices. The transaction is expected to close in the first
quarter of 2014, subject to approval by Nokia’s share-
holders, regulatory approvals and other closing con-
ditions. Building on a partnership with Nokia that
began in February 2011, Microsoft reportedly aims
to accelerate the growth of its share and profit in
mobile devices through faster innovation, increased
synergies, and unified branding and marketing. For
Nokia, this transaction is anticipated to be signifi-
cantly accretive to earnings and strengthening of its
financial position, providing a solid basis for future
investment in its continuing businesses. “It’s a bold
step into the future – a win-win for employees, share-
holders and consumers of both companies,” says
Microsoft Chief Executive Officer Steve Ballmer.
“Bringing these great teams together will accelerate
Microsoft’s share and profits in phones, and strength-
en the overall opportunities for both Microsoft and
our partners across our entire family of devices and
services. In addition to their innovation and strength
in phones at all price points, Nokia brings proven ca-
pability and talent in critical areas such as hardware
design and engineering, supply chain and manufac-
turing management, and hardware sales, marketing
and distribution.”
Risto Siilasmaa, Chairman of the Nokia Board
of Directors and Interim CEO, refers to the move as
an “important moment of reinvention” for Nokia.
“From a position of financial strength, we can build
our next chapter ... After a thorough assessment of
