“It’s a bold step into the future—a winwin for employees,shareholders and consumers of both companies,”Microsoft CEO Steven Ballmer told reporters at Nokia’s headquarters in Finland Tuesday.“It’s a signature event.”
Microsoft hopes to complete the deal early next year.Then about 32,000 Nokia employees will transfer to Microsoft,which currently has about 99,000 workers.The proposed price consists of 3.79 billion euros(5 billion) for the Nokia that makes mobile phones,including its line of Lamia smartphones that run Windows Phone,software.Another 1.65 billion euros(2.2 billion) will be paid for a 10year license to use Nokia’s patents.
Microsoft has been racing to catch up with customers who are increasingly pursuing their digital lives on smartphones and tablet computers rather than the traditional PCs.The shift is weakening Microsoft,which has dominated the PC software market for the past 30 years,and empowering Apple,the maker of the trendsetting iPhone and iPad,and Google,which gives away the world’s most popular mobile operating system,Android.
Neil Mawston from Strategy Analytics said the move was good for Nokia’s shareholders but did not change much for the Finnish firm which has lost significant market share.“Nokia is still heavily dependent on Microsoft’s software capabilities and Microsoft continues to fall behind in the market like it has done in the last few years,” Mawston said.“Not much will change whether Nokia is inside or outside Microsoft.”
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