Microsoft in process to acquire Nokia’s handset business

4092013

 Microsoft Corporation  said it would buy Nokia’s mobile phone business for 5.44 billion euros ($7.2 billion), and the Finnish firm said its CEO, Stephen Elop, would join Microsoft when the transaction closed.

Finland’s Nokia,  once chief and pioneer in mobile phones,  struggling to respond to the challenge from smartphone makers such as Apple and Samsung.

Analysts say Elop’s bold bet in 2011 to adopt Microsoft’s untested Windows Phone software has yet to pay off.

The mega deal is expected to close in the first quarter of 2014 and is subject to approval by Nokia’s shareholders and regulatory approvals. Nokia partnered in 2011 with Microsoft and uses Microsoft’s Windows software to run its mobile phones.

“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,” said Microsoft’s outgoing CEO, Steve Ballmer,in a statement.

Nokia said in a statement it expected that Elop, along with senior executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, would transfer to Microsoft when the deal was concluded. It did not say what roles they would take at Microsoft. Media agencies