Today in a press conference in Finland, Nokia's outgoing CEO Stephen Elop made a big announcement. Nokia sold its devices and services to Microsoft which also includes Nokia's patents and mapping services. The deal was made for $7.2 billion and the deal is expected to close in the 2014's first quarter after the regulatory approvals. This is the same move that Google took by acquiring Motorola.
Nokia's outgoing CEO Stephen Elop said:
"The decision was very difficult and painful to make but it was necessary. He also said that Nokia is far behind from its two big competitors referring to the Google's Android and Apple's iOS and said that "our goal of becoming the third ecosystem is becoming real" He also added that we need more potential to break through with consumers"
Elop left Microsoft three years ago and became the CEO of Nokia. Now he will head back to Microsoft and probably carry the same title.
Microsoft's retiring CEO steve Ballmer said:
"The acquisition of Nokia is good for our hardware partners. The sales of Nokia device are increasing from recent few quarters. The deal will immensely help us to gain momentum and strengthen our services.The deal was made for what is best for both the companies. He also added that Elop is good candidate for CEO post for Microsoft as he will soon retire from the service"
The deal will increase the profit of Nokia. The 150 year old company will split into other businesses and look very different. It will only concentrate on the mobile phone broadband service and the mapping service that its sells to 120 countries and 600 carriers. After the deal closes 32000 employees of Nokia would transfer to Microsoft. This is a very positive and beneficial step by Microsoft, soon we will see how the move works for them.
Nokia's outgoing CEO Stephen Elop said:
"The decision was very difficult and painful to make but it was necessary. He also said that Nokia is far behind from its two big competitors referring to the Google's Android and Apple's iOS and said that "our goal of becoming the third ecosystem is becoming real" He also added that we need more potential to break through with consumers"
Elop left Microsoft three years ago and became the CEO of Nokia. Now he will head back to Microsoft and probably carry the same title.
Microsoft's retiring CEO steve Ballmer said:
"The acquisition of Nokia is good for our hardware partners. The sales of Nokia device are increasing from recent few quarters. The deal will immensely help us to gain momentum and strengthen our services.The deal was made for what is best for both the companies. He also added that Elop is good candidate for CEO post for Microsoft as he will soon retire from the service"
The deal will increase the profit of Nokia. The 150 year old company will split into other businesses and look very different. It will only concentrate on the mobile phone broadband service and the mapping service that its sells to 120 countries and 600 carriers. After the deal closes 32000 employees of Nokia would transfer to Microsoft. This is a very positive and beneficial step by Microsoft, soon we will see how the move works for them.
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