Microsoft announced today that it would acquire Nokia’s mobile phone business in the latest blockbuster news that signals a massive transformation of the tech giant.
Just two weeks ago, the company revealed that Chief Executive Steve Ballmer would retire in the next 12 months. Then week, Microsoft said it had struck a deal with an activist investor to revamp its business more into the “devices and services” company that Ballmer has discussed in recent months..
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said in a press release.
Under the terms of the deal, Microsoft will pay $7.2 billion to purchase Nokia’s devices business as well as license to all of its patents.
In the wake of Ballmer’s retirement news, Nokia CEO Stephen Elop was one of the names mentioned as a possible CEO candidate.
Several top Nokia executives will leave Nokia to join Microsoft, including Elop, who will become Nokia’s executive vice president of devices and services.
