Microsoft buys Nokia mobile unit to fight Apple and Google
4 Sep 2013 12:14 AM GMT
Nokia on Tuesday said it was selling its beleaguered mobile phone unit to Microsoft for $7.17 billion (5.44 billion euros) as the US tech giant tries to fight back against rivals Apple and Google.
Investors cheered the news, as Nokia’s share price soared by 45% in opening trading on the Helsinki stock exchange to 4.3 euros.
Nokia, once the world’s leading mobile phone maker, will grant the US software giant a 10-year non-exclusive licence to its patents and will itself focus on network infrastructure and mapping services, which it called ‘the best path forward for Nokia and its shareholders.’
With Tuesday’s announcement, Microsoft is following in the footsteps of its internet rival Google, which already invested in hardware when it bought US phone manufacturer Motorola.
Nokia and Microsoft entered into a partnership in 2011 to create Nokia smartphones using Microsoft’s Windows Phone software. Microsoft chief executive Steve Ballmer told reporters the Nokia acquisition ‘will accelerate our success in smartphones.’
He said Windows Phone was ‘the fastest growing smart platform today, growing by 78% last year.’ Analysts saw Tuesday’s move as a bid to compete with Google and Apple.
Investors cheered the news, as Nokia’s share price soared by 45% in opening trading on the Helsinki stock exchange to 4.3 euros.
Nokia, once the world’s leading mobile phone maker, will grant the US software giant a 10-year non-exclusive licence to its patents and will itself focus on network infrastructure and mapping services, which it called ‘the best path forward for Nokia and its shareholders.’
With Tuesday’s announcement, Microsoft is following in the footsteps of its internet rival Google, which already invested in hardware when it bought US phone manufacturer Motorola.
Nokia and Microsoft entered into a partnership in 2011 to create Nokia smartphones using Microsoft’s Windows Phone software. Microsoft chief executive Steve Ballmer told reporters the Nokia acquisition ‘will accelerate our success in smartphones.’
He said Windows Phone was ‘the fastest growing smart platform today, growing by 78% last year.’ Analysts saw Tuesday’s move as a bid to compete with Google and Apple.
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