Nokia has announced to sell all its Mobile and Smart Devices business to Microsoft

Well, at last, the leave has fallen from Nokia’s tree as it has officially announced that it is going to sell all its mobile and smart devices business to Microsoft. Nokia may be happy since it will receive a huge price of 5.44 billion euros which estimates to be $7.2 billion from Microsoft.The deal is expected to be completed in next year, of course, after assent of Nokia’a shareholders and transactions made by Microsoft.

 ”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,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, also Nokia interim CEO.

Nokia will also going to transfer it manpower to Microsoft as it has declared that almost 32,000 people will be sent under Microsoft shelter. Meanwhille Microsoft has expressed its hope that both Microsoft and Nokia team will help to boost Microsoft’s profits.

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.” Microsoft CEO Steve Ballmer expressed his thoughts.

Moreover, Nokia will grant 10 years of non-exclusive license to its patents, and Microsoft will grant Nokia reciprocal rights related to HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement to perpetuity. Of the total purchase price of EUR 5.44 billion, EUR 3.79 billion relates to the purchase of substantially all of the Devices & Services business, and EUR 1.65 billion relates to the mutual patent agreement and future option

As far as Microsoft is concerned, they wanted to give Android and iOS a tough competition and were already dictating Nokia for that reason. So far Microsoft-Nokia partnership did not proved to be that fruitful as  Windows phones has not been able to compete with the successes of iPhone and, especially, Android Smartphones and now when Microsoft has become all in all, it will be interesting to see how they perform in coming years