Microsoft announces acquisition of Nokia phone unit for $ 7.17 bi

WASHINGTON-Microsoft announced late on Monday that it is buying control of the cellular unit of Nokia for 3.79 billion euros ($ 5 billion), plus other 1.65 billion euros ($ 2.17 billion) on the licenses Nokia patent portfolio, totaling 5.44 billion euros (US $ 7.17 billion).
Once the deal is completed, a series of Nokia executives will join Microsoft, including Stephen Elop, former Microsoft seen as one of the leading candidates to replace the Chief Executive of Microsoft, Steve Ballmer. Should also go to the American company executives Jo Harlow, Juha Putkiranta, Timo Toikkanen and Chris Weber.
At the moment, Elop is leaving the post of Chief Executive of Nokia to become Executive Vice President of devices and services. The Chairman of Nokia, Risto Siilasmaa, will be in charge of Elop provisionally.
"For Nokia, this is an important moment of reinvention and, from a strong financial position, we can build our next chapter," said Siilasmaa. "After a thorough assessment on how to maximize shareholder gains, among a number of alternatives, we believe that this transaction is the best way forward for Nokia and its shareholders," he concluded.
The move is a clear sign that Microsoft believes it can and should succeed in the telephony business. The company says it can't afford to leave the outcome in the hands of a partner, even though it's a Nokia, which has bet its future on Microsoft's own phone software.
"The Union of these large teams will speed up actions and Microsoft's profits in phones and strengthen the global opportunities for ourselves and our partners through our entire family of devices and services," Ballmer said in a statement.
"In addition to its innovation and strength on phones in all price bands, Nokia brings proven ability and talent in critical areas, such as the hardware and engineering design, supply chain management, production, sales, marketing and distribution", complemented the head of Microsoft.
Microsoft will dip into its large cash reserves overseas to finance the deal. At the end of the operation, about 32 thousand employees will transfer to Microsoft, including 4,700 in Finland, Nokia's country of origin.
When selling your business better known to Microsoft, Nokia will focus on its cellular network equipment, geolocation services, and the so-called "advanced technologies".