Microsoft buys Nokia’s device and service business for $7 billion

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September 3, 2013: Microsoft has announced a landmark deal to buy out Nokia’s mobile device and services business for $7 billion. This has come as a suprise to many. However, the increased synergy of Nokia Lumia series and its long standing association with Windows OS dumping Nokia’s own home grown Symbian OS had given some indicataion on this likely long term association.

This was termed as a bold and transformational step by Steve Ballmer, CEO, Microsoft. As per the deal, Microsoft will integrated Nokia’s smartphone and feature phone business, patents and design teams, integration teams and also sales, marketing related operations too to their business. The company has also announced key executives who will be leading the integration of two business giants on the devices and operations side. The deal is being hailed as a positive move on both parties as they can leverage their synergies well to give tough competition to both Apple and Samsung in the mobile device business. On the flop side, there are many apprehensions on how Microsoft will run their device business and who will call the shots.

It remains to be seen as how this integration will work and how it will impact the global mobility business.

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