Microsoft Buys Nokia's Entire Smartphone Business For $7 Billion


Bangalore: Microsoft is buying Nokia’s devices and services business, license Nokia’s patents, and its mapping services for $7 billion (EUR 4.5 billion), according to the press release from the company.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.

The deal will include Nokia’s Asha brand of low to mid-level Smartphones along with popular Lumia range of Smartphones, which have grown in sales in each of the last three quarters, with numbers reaching 7.4 million units in the second quarter of 2013.

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