In a somewhat surprising move, Microsoft announced late Monday that it is buying the majority of Nokia’s cellphone business (including its non-smartphone business) along with a ten-year license to Nokia’s patent portfolio for a total of 5.44 billion euros, or over $7.17 billion.
The deal with see former Microsoft exec Steven Elop, current CEO of Nokia, once again become a Microsoft employee as executive VP of devices and services. Some 32,000 Nokia employees will become Microsoft employees when the deal is finalized.
This deal puts Elop in the frontrunner position to become the new CEO of Microsoft when current CEO Steve Ballmer steps down in the next year.
Nokia will continue in business with its remaining goods and services, which is about equal to the business it’s selling to Microsoft. Nokia will focus on its businesses making cellular networking equipment, its Here location-based services, and other “advanced technologies,” according to a statement.
What this deal means to the Xbox division isn’t immediately clear, though it might mean even greater cooperation with Windows Phone in some fashion.
Source: AllThingsD
