Here Is Microsoft’s ‘Bold Step into the Future’
Earlier in the year, analysts postulated that since Microsoft (NASDAQ:MSFT) already designs the software that runs the majority of Nokia’s (NYSE:NOK) smartphones, it would make sense for the Windows Phone developer to purchase the entire handset division from the Finnish mobile phone manufacturer. Late on Monday evening, Microsoft announced that it will purchase substantially all of Nokia’s Devices & Services business, license the company’s patents, and license and use of its mapping services for about $7.2 billion.
In addition, 32,000 Nokia employees will join Microsoft, as will Stephen Elop, the former senior Microsoft executive who became Nokia’s Chief Executive Officer. This move will place him in position to be a potential successor to Steve Ballmer, Microsoft’s current chief executive who announced last month that he will retire from the company within 12 months. Whoever replaces him is expected to be able to do what Ballmer couldn’t: revitalize the company. Given the importance of mobile to Microsoft’s future, Elop could be a prime contender.
“This agreement is really a bold step into the future for Microsoft,” Mr. Ballmer told The New York Times in a telephone interview from Finland. “We’re excited about the talent capabilities it will bring to Microsoft.”