Microsoft is planning to buy Nokia’s mobile phone division for 5.44 billion Euros, in a bid to expand itself in the smartphone market.
The acquisition is expected to close in the first quarter of 2014, and is subject to approval by Nokia’s shareholders and regulators.
“It’s a bold step into the future—a win-win for employees, shareholders, and consumers of both companies,” said Microsoft’s outgoing CEO Steve Ballmer in an official statement.
“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,” he added.
As part of the deal, Nokia’s CEO Stephen Elop will be stepping down and will return to Microsoft as the “vice president of the company’s ‘device’ team.
According to The Guardian, both Nokia and Microsoft “have been struggling to respond to the challenge from smartphone makers such as Apple and Samsung”.
Will the acquisition of Nokia bring about a stronger challenge from Microsoft in the smartphone market?
[via The Guardian and Forbes]