Microsoft Enters Into $7.1B Deal To Buy Nokia's Devices And Services Business And License Key Patents

In a surprise deal bringing two longtime tech giants closer together than ever, Microsoft announced Monday evening that it has inked a deal with Nokia to acquire “substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.”

The total price of the deal is EUR 5.44 billion, which is currently worth $7.17 billion in U.S. dollars. The Devices and Services business acquisition accounts for EUR 3.79 billion of that, with the patent licensing deal making up the remaining EUR 1.65 billion.

In a press release announcing the news, Microsoft CEO Steve Ballmer said the following:

“It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”

Nokia and Microsoft inked a partnership back in 2011, but this is a much more serious merger of the two businesses. In addition, Nokia CEO Steven Elop has emerged as a rumored contender for the soon-to-be-vacant spot at the helm of Microsoft — so this could give a hint to the future of Microsoft leadership.

This is breaking news with potentially large ramifications — we will update this post with more information, and follow up with more analysis and news.

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