Buying Nokia's gadget business thrusts Microsoft intent on proving mobile and tablet consumers of Nokia and Microsoft a new paradigm shift and an alternative to Google.
The Federal Trade Commission has signed off on the Nokia-Microsoft deal, meaning that there is little if anything left that could derail the potential marriage of Microsoft's money and Nokia's hardware business.
The deal, worth around $7.2 billion, will see Microsoft absorb the largest OEM for its Windows Phone line of smartphones.
The news that Microsoft has purchased substantial assets from Nokia came as a surprise, but perhaps it shouldn’t have. The underlying reason that Microsoft had little choice but to buy Nokia is plain: Nokia had too much control over the Windows Phone platform, and Microsoft could not afford to lose its primacy over its mobile efforts.
How did we end up in this situation?
Today the European Union signed off on Microsoft's purchase of Nokia's handset business, a transaction worth more than $7 billion. Recently, the deal was approved by Nokia's shareholders, and the United States government.
Little remains in the way of Microsoft's absorbing Nokia's hardware business.
The Nokia-Microsoft deal that will see the former’s handset business find a new home at the latter is still a go, and should wrap in the first quarter of this year. That gives the deal around 1.5 months to get itself over the finish line.
Nokia today released a statement to that effect, emphasizing that a tax squabble in India would not impact the closing of the deal.
Nokia's shareholders have approved the sale of its devices & services unit to Microsoft at an EGM held today in Helsinki, the FT reports. The transaction is still expected to close in the first quarter of next year, with Nokia in a caretaker role of its own mobile making division until early 2014.
It's the end of an era for Nokia.
In a surprise move, Microsoft announced Monday evening that it has inked a deal with Nokia to acquire “substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.”
The total price of the deal is EUR 5.44 billion in cash, which is currently worth $7.17 billion in U.S. dollars.