Nokia sold to Microsoft
Yesterday was a big day and pretty much shocking for the mobile industry. Two major companies have decided to change their developing paths. Microsoft decided to buy Nokia. As expected the news ringed around the world. For many, this news was a surprise, but we could anticipatesomething similar from earlier happenings. Nokia has already spent several years in business issues and was definitely looking for a way out of this situation. On the other hand, Microsoft was looking for a space in the fast-growing mobile market and the deal closed.
Nokia and Microsoft - a deal worth $7.2 billion
Details of the $7.2 billion deal are coming to realization early next year. In the meantime, it is necessary for shareholders to approve the sale of Nokia and a new era in mobile phone manufacturing can begin. It is interesting that Microsoft will pay its obligation in one transaction, which is not surprising because it is one of the largest companies in the world. The software giant from Redmond will pay exactly $5 billion for Nokia's manufacturing mobile phone department and variety of services, while the uptake of licenses and patents will cost $2.2 billion.
Nokia plans to further development
Microsoft officially states that the reason for this purchase is increasing its share in the mobile market. The reason is clear - higher profits. The company wants bigger and faster innovation, that plans to mix with globally recognizable brand and create great success. And Nokia gets what? First of all money and a great partner. The funds obtained from the sale of the rest of the company Nokia will use to work on developing new products.
Windows Phone - common point of cooperation
This development is a continuation of the partnership signed in 2011, when the two companies agreed to begin the production of Nokia phones with Windows Phone platform. Since then, Nokia has become a symbol for Windows Phones, which is particularly well reflected in sales in the last quarter, when the Finns sold 7.4 million phones.
Microsoft Lumia is the new star!?
At this moment we believe Microsoft made a good move. The company is entering the wholesale market, where competition is fierce, but there is a room for new competitors. The first thing to notice is that brand Nokia is shutting off and that Microsoft will only keep the series Lumia name. We guess we'll soon see Microsoft Lumia phones.
Source:theguardian.com
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