Microsoft will obtain Nokia’s devices and services unit and license. The company will deal the services worth $7.2 billion in a bid to boost up the company’s status in the smartphone market.
The software giant will pay $5 billion for “substantially all” of Nokia phone units and other $2.2 billion for license protection, the companies declared on Sunday.
Stephen Elop will move down from Nokia chief executive to executive vice president of the services and devices departments. Elop, the retired Microsoft executive, is one of the powerful competitors recommend to displace Microsoft Steve Ballmer, who is expected to leave next summer.
Ballmer and Elop tell in the mutual statement:
“Today’s agreement will accelerate the momentum of Nokia’s devices and services, bringing the world’s most innovative smartphones to more people, while continuing to connect the next billion people with Nokia’s mobile phone portfolio,”
Elop, the previous executive of the Microsoft Business Division,. He joined Microsoft in January 2008 after serving as COO of Juniper Networks and as an executive at Adobe Systems.
Elop said in a statement:
“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.”
Nokia Chairman Risto Siilasmaa will become Nokia’s interim CEO while the company seeks for a permanent replacement.
“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter, 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.”