Microsoft buys Nokia mobile for less than Skype

Microsoft buys Nokia mobile for less than Skype
SHARE
THIS



Tech giant Microsoft has bought up the mobile phone hardware division of Finnish firm Nokia for $8bn, signaling a more aggressive move by the firm into the mobile space.

Nokia has been on a downward trajectory since the dawn of the smartphone, failing to keep pace with companies like Apple and Samsung in the race to innovate in the emerging market.

Its last handsets have all featured the Windows 8 operating system which has yet to catch on with Apple’s iOS and Google’s Android the dominant forces in the market.

Under the terms of the deal, expected to be completed in the first quarter of 2014, Nokia’s CEO Stephen Elop will join Microsoft after it has completed, with the Canadian who moved to the company in 2010 from Microsoft a favourite to succeed CEO Steve Ballmer when he retires next year.

Ballmer said in a statement: “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."

 "In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution."

The move echoes Google’s acquisition of Motorola in 2011, and follows Microsoft’s $8.5bn capture of Skype in the same year.

Risto Siilasmaa, Nokia’s new interim CEO said: "After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders.

“Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.”

Nokia has been struggling with cash-flow problems because of weaker than hoped demand for it Lumia products, which run Windows 8, whilst Microsoft has struggled to shake the tag with consumers of being a PC software firm. 

Please login with linkedin to comment

Latest News

Women In Print Starts New Chapter & Finds New Home
  • Media

Women In Print Starts New Chapter & Finds New Home

Women in Print has re-launched itself this week to take on the year, and future ahead. A refreshed brand, website, calendar and team are leading the way with Women in Print also announcing a new partnership with The Real Media Collective. A new look, new management and new focus – Community, Knowledge, Network and Support […]

Emotive Partners With YouTube And The United Nations
  • Media

Emotive Partners With YouTube And The United Nations

Creative agency, Emotive, and Good Oil Films, is partnering with YouTube and the United Nations to raise awareness around the importance of quality education, which forms part of the UN’s Global Goals for sustainable development.

ScoMo Rules Out TikTok Ban
  • Technology

ScoMo Rules Out TikTok Ban

ScoMo rules out TikTok ban, as Albo releases his latest unicorn, fairy dance video complete with cascading rainbows.

by B&T Magazine

B&T Magazine
Outdoor Industry Unites For Global #OurSecondChance Campaign
  • Campaigns
  • Media

Outdoor Industry Unites For Global #OurSecondChance Campaign

The global Out of Home (OOH) industry has today launched a campaign #OurSecondChance. The campaign asks simple questions about how we can make the most of the positive opportunities that have arisen out of the pandemic. Broadcast on OOH signs around the globe #OurSecondChance is collaboration between World Out of Home Organisation (WOO) and the […]

batyr & UM Take ‘Run For The Herd’ Virtual
  • Campaigns

batyr & UM Take ‘Run For The Herd’ Virtual

With the COVID-19 crisis affecting all crowd-based activities, youth mental-health charity batyr has devised the first-ever Run for the Herd Virtual Festival partnering with media business UM to bring the virtual event to life.  With the City2Surf event in Sydney, normally a big fund-raising opportunity for batyr, postponed this year, batyr has created a virtual event and with the support of UM are encouraging […]

QMS Sport Rebrands As Media Tech
  • Media

QMS Sport Rebrands As Media Tech

Following QMS’ acquisition of TLA Worldwide (Aust) last year, QMS Sport has today announced it will transition to the TLA brand and formally become a business unit of TLA. ‘Media Tech’ is officially the new name for what was formally known as QMS Sport, and will operate alongside TLA’s existing business units that span the […]