Microsoft Buying Nokia Device & Services for $5 billion, patents for $2 billion

elop-ballmer We all knew this was coming, it was just a matter of when. Microsoft just announced it will be acquiring  a cool 3.79 billion euros ($4.99 billion) for the business, and 1.65 billion euros ($2.18 billion) for the patent arsenal. According to the companies’ press releases, 32,000 people will transfer across Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in product manufacture. If you thought it was only the Windows Phone component of the phone business, you’d be wrong: Microsoft will also take into ownership Nokia’s Asha range of feature phones. Patent-wise, Microsoft gets 10-year non-exclusive license to its Finnish partner’s library of ideas and “reciprocal rights” to use Microsoft patents within its HERE mapping services. While Microsoft will be able to use the Nokia branding on its products, the Finnish company will now focus on its mapping, infrastructure and advanced tech arms.

Industry reaction

“Microsoft’s acquisition of Nokia’s handset business will help strengthen the Windows Phone ecosystem.  It underscores how the future of mobile computing will be software-driven and cloud-based, further taking advantage of high-speed mobile networks to transform how we live and work.” – Ralph de la Vega, president & CEO, AT&T Mobility.

Also here is Microsoft Full presentation of their acqusition purpose

StrategicRationale