Microsoft Buy Nokia’s Mobile Handset Business For $7.2 Billion

The BBC reports that the deal between Nokia and Microsoft has been finalised. The deal sees Microsoft buy Nokia’s mobile handset business for $7.2 billion. As part of the deal Nokia will license its patents and mapping services to Microsoft. The deal will happen in early 2014 when 32,000 Nokia employees will jump ship to Microsoft. Nokia shares rose 45% after announcing the deal. The transaction is subject to approval by Nokia shareholders and regulators but is very likely to be approved.

Interestingly Nokia’s Stephen Elop will stop down as president and chief executive of the Nokia corporation and resign from the company’s board. He is expected to “transfer to Microsoft at the anticipated closing” of the deal. Many have speculated that Stephen Elop will become the new CEO of Microsoft and replace Steve Ballmer.With the mobile handset business gone Nokia says it will focus on three key businesses – network equipment manufacturing, mapping and location services, and the development and licensing of technology.

Image courtesy of NokiaGadgets.com