While the entire Apple community is waiting for news about the new iPhone and iOS, the most important events are taking place on the mobile market.
Just a few hours ago, Microsoft announced its intention to buy most of Nokia's mobile division along with patents and licenses from companies. The total amount of the transaction will be $ 7.2 billion. The transaction is expected to be completed in the first quarter of 2014
After the deal is completed, most of Nokia's top management and employees will go to work at Microsoft, including Stephen Elop, Joe Harlow, Chris Weber and others. In total, more than 32 thousand employees of the Finnish company will move to Microsoft.
This means that Elop will step down as CEO of Nokia, and Risto Silasmaa will temporarily take over his position. Elop will also become executive vice president of devices and services at Microsoft. Steve Ballmer, in an email sent to the company's employees, says that Elop is going to work for the Redmonds to lead the division responsible for the devices.
Microsoft specifically notes that the purchase of Nokia's mobile business and its patents is the key to the further development of the company's devices and services. The foundation of such interaction is the partnership agreement with Nokia signed in February 2011.
Redmond residents note that by purchasing Nokia they want to accelerate the growth of their development in the mobile market through innovation, improved interaction, as well as unified branding and marketing. Here 's what Ballmer says about this:
The combination of such great teams [Microsoft and Nokia] will increase Microsoft's profits in the mobile market and will strengthen cooperation between Microsoft and our partners. In addition to its phone innovations, Nokia is valuable for its approach to design, hardware, engineering, production management, marketing and distribution.
Also, according to Ballmer, Nokia plans to focus on the other three remaining businesses of the company: network infrastructure and services, geolocation services and technology development.
Nokia 's interim CEO Risto Siilasmaa said:
After a thorough evaluation of the shareholder value, we believe that this transaction is the best solution among others for Nokia and its shareholders
Well, it's safe to say that a whole era is leaving us, a real pillar of the entire mobile industry. Who would have thought 5 years ago that a Finnish company would leave Microsoft for nothing? At first, the Finns refused to develop their own mobile software, now Nokia has finally ceased to be an independent company. You know, I've never been an ardent Nokia fan, but still I'm very sorry that everything turned out that way.
On the other hand, you should be happy for Microsoft, because they turned out a very profitable and useful deal for themselves.
In general, apparently, even more interesting times are waiting for us in the mobile market than before — competition is only intensifying and it will be interesting to see how different companies will cope with it.
