Microsoft Announced To Contribute With Nokia To Enter The Mobile Phone Market.

Microsoft Announced To Contribute With Nokia To Enter The Mobile Phone Market.

One of the top American software company Microsoft is going to buy Nokia (Finland’s Telecom Hardware Company) hand set in Rs. 48,564 INR Crores. The deal will be in cash. As per the deal Microsoft will have access to all its products, services and their patent technology.

Microsoft is making a massive investment in its mobile future with the $7.2-billion purchase of Nokia’s handset and services business, announced by the companies today. The Redmond software giant has been slow to enter the mobile phone market and, as a result, has been left far behind by chief rivals Samsung and Apple. If its multi-billion dollar deals with Nokia — which is best known for its Lumia devices — is approved by the Finnish company’s shareholders and meets regulatory approvals, Microsoft will be positioned to make a noticeable impact on the Smartphone market. The deal is expected to close in the first quarter of 2014.

As part of the deal, Nokia will grant Microsoft a 10-year non-exclusive license to its patents and Microsoft will grant Nokia reciprocal rights related to HERE, it mapping and location services. Nokia will also grant Microsoft an option to extend this mutual patent agreement to perpetuity.
The deal between the two companies is not completed unexpected — Microsoft and Nokia have been partners since February 2011.

The purchase, Microsoft said in a press release, will allow the company to increase its share and profit in the Smartphone market “through faster innovation, increased synergies, and unified branding and marketing.”
Nokia, on the other hand, gets much-needed cash infusion for the remainder of its business interests: network infrastructure and services, mapping and location services and technology development and licensing.
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 Nokia board of directors chairman and interim CEO Risto Siilasmaa in a press release.
Steve Ballmer, who recently announced his upcoming retirement as Microsoft’s CEO, described the deal as 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, Ballmer said. “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.”
Stephen Elop — who following today’s announcement is stepping aside as Nokia president and CEO to become the firm’s executive vice-president of devices and services — said the deal will bring a number of talented new people to Microsoft.