: Microsoft would buy nokia devices and services. Microsoft will pay to nokia to buy the business, and also will pay about to buy the patent, the total amount of purchase is about $7.175 billion.
why buy? Microsoft’s explanation basically has the following reasons: 1, expanding the mobile phone market share, improve mobile phone business profits; 2, for the user to create Microsoft mobile phone top experience; 3, sabotage against Google and apple application innovation, integration, distribution and application of the economy; 4, borrows the smartphone development situation, grab a huge opportunity.
nokia is one of the biggest Windows Phone phone makers, acquisitions is advantageous to the Microsoft software and hardware integration ecological system in order to promote their own mobile operating system.
before the acquisition, nokia of the equipment and services, Here maps and nokia solution departments (the original nokia Siemens), a total of three big business. With the latest in the earnings release, according to the second quarter of the overall revenue of 5.69 billion euros ($7.4 billion), compared with $9.2 billion over the same period last year fell sharply. Among them, the equipment and services revenue of 2.724 billion euros, accounting for 47.8% of the company’s total revenue of 5.695 billion euros. And in the same period last year, equipment and services sales revenue is 4.023 billion euros, that is to say, the unit performance is still in sharp decline this year.
elop abdication, as to be temporarily acquired executive vice President of nokia devices and services section. Nokia’s former board chairman Risto Siilasmaa as nokia transition .
after the deal, there will be 32000 nokia joined Microsoft employees, including 4700 Finnish staff and about 18300 workers manufacturing department.
according to the two sides signed the agreement, trading and several important parts: 1, Microsoft to provide nokia 1.5 billion euros of convertible bond financing; 2, the two sides signed a 10-year mutual authorization agreement; 3, according to nokia’s performance has a two-way valuation adjustment; 4, if the final approval is not obtained, Microsoft to nokia for a $750 million break-up fee.
Steve ballmer and elop release letter said the move will accelerate the development of the Windows ecosystem, and write a new chapter.
here is a letter in full:
Microsoft would buy nokia devices and services, accelerate the development of the Windows ecosystem
nokia and Microsoft are both think great dream – we had dreamed of every table should have a computer, everyone should have a mobile phone in his pocket, and through our long-term unremitting efforts today these dreams have gradually become a reality.
today marks a new moment innovation initiative.
the nokia 150 years of inheritance, innovation, excellence, and constantly innovation, the change of DNA from Finland and continuously to develop and spread around the world. From the original paper mill to produce rubber shoes and tires, and then to the mobile phone, the spirit of innovation in nokia’s blood.
nokia will write a new chapter, to continue in the field of mobile network, map and location, and cutting-edge science and technology innovation.
Microsoft also is so, today is a brave step towards future, towards our new journey of a large span: create a series of devices and services, consumers and power size enterprises.
in the us over the past two and a half years of cooperation, both sides with their respective strengths to set up a new global mobile ecosystem, remarkable achievements: through the award-winning mobile Phones and mobile applications and services, nokia Windows Phones are becoming the world’s fastest growing intelligent terminal.
on the basis of the successful cooperation, we announced today that it has the important news: Microsoft’s intention to buy nokia devices and services business, providing customers with more choices, more rapid innovation and more amazing equipment and services.
this will accelerate the development of nokia devices and services, bring more people to the world’s most innovative smart phones, by nokia’s feature phones rich products at the same time continue to the next billion users.
Microsoft’s commitment and resources will continue to forward to drive the nokia devices and services, we can realize the great potential of the Windows ecosystem now, for people’s work and life bring the perfect mobile experience.
we will continue to produce your favorite mobile phone, at the same time to invest in the future – a blend of the best resources of Microsoft and nokia phones and new services.
nokia and Microsoft will be fully into the new chapter.