Another Mobile Bombshell: Microsoft will Buy Nokia's Phone Business for $7.2 Billion

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Microsoft and Nokia just dropped another bombshell on the mobile industry. Apparently the two companies have struck a deal for Microsoft to purchase Nokia's struggling phone business for $7.2 Billion dollars. This is both a bold and a desperate move on the part of Microsoft to try and make headway against Apple and Samsung. Here's a quote with a few more details,

The deal comes on the heels of Microsoft's announcement that Chief Executive Steve Ballmer will retire as soon as a successor is found. As part of the deal for Nokia's devices-and-services business, Microsoft will bring aboard 32,000 Nokia employees including CEO Stephen Elop, who is believed to be among the contenders for Mr. Ballmer's job.

The companies said late Monday that Microsoft will pay €3.79 billion to buy "substantially all" of the Nokia business, which includes its smartphone operations. The Redmond, Wash., company will also pay €1.65 billion to license Nokia's patents, the companies said, bringing the deal to €5.44 billion, or $7.18 billion.

It's amazing to see how quickly things can turn in the technology world. Of course, you could also easily argue that this has been coming on for quite some time. Nokia has been struggling to keep a foothold in the mobile world, and Microsoft was late to the party. Perhaps this is the best thing for both companies in the long run. Regardless, this $7.2 Billion dollar price is a almost a steal for Microsoft to finally have their own mobile tech business, all wrapped up into one package. The question remains, "where do they go from here?"

Source: WSJ