|By Aaron Sims | 7 years ago|
With the $7.2 billion purchase of Nokia’s devices and services unit, Microsoft makes a major push into the hardware game.
After eight months, Microsoft and Nokia announced Friday that the merger was finally complete, with both regulators and Nokia shareholders signing off on the deal.
“As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer,” said Stephen Elop, former Nokia CEO and current Microsoft Executive Vice President, Devices & Services, in an open letter.
At Microsoft, Elop will oversee the company’s hardware business, ranging from mobile devices to Xbox videogame consoles, The Wall Street Journal reports. Elop will report to Microsoft CEO Satya Nadella. Nokia said the final transaction price would be slightly higher than expected, due to some purchase price adjustments relating to net working capital and cash earnings, according to WSJ.
“We are passionate about building technology that will change the world,” said Elop. “From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, we have empowered generations.”
The Verge reports that Microsoft will pay €3.79 billion for Nokia’s phone making business, plus another €1.65 billion to license its portfolio of patents, for a total of around €5.44 billion (approximately $7.2 billion). With an additional 25,000 employees moving across from Nokia, the software giant will now be responsible for shipping more than 200 million handsets a year.
Nokia’s phone business will now be known as “Microsoft Mobile” and will be run as a separate subsidiary.
“Together, we can connect and empower people with one experience for everything in their life,” said Elop. “The possibilities are endless. As now, we’re one.”