Microsoft took over Nokia’s handset business

Microsoft took over Nokia’s handset business

Nokia mobile handsets and device business has fallen into the lap of American information technology giant Microsoft at a price tag of $7.17 billion. The announcement from Nokia’s headquarters in Helsinki on3rd September, said that under the deal, Microsoft will pay “Euro 3.79 billion to purchase substantially all of Nokia’s device and service business and Euro 1.65 billion to license Nokia’s patents for a total transaction price of Euro 5.44 billion in cash.” 

Both Microsoft and Nokia were widely regarded as having missed the bus — Nokia was too late in the smartphone space and Microsoft did not have a device platform for its software business. This deal comes at a time when the mobile handset business is seeing a worldwide slow down. 

Press releases from both companies clarified that the deal includes “the mobile phones and smart devices’ business units as well as an industry leading design team, operations including all Nokia devices & services-related production facilities, device & services-related sales and marketing activities, and related support functions.” 

Nearly 32,000 Nokia employees will go over to Microsoft. Nokia and Microsoft have had a strategic partnership since 2001, under which Nokia CEO and former Microsoft executive Stephen Elop had agreed to make Windows the exclusive operating system for Nokia smartphones. 

With 2.7 billion Internet users and nearly 7 billion mobile phones worldwide, Microsoft hopes to use the deal to leapfrog into the smartphone market by becoming a hardware vendor. It is widely expected that a vast majority of the next 4 billion Internet users will access the web with smartphones and wireless devices. 

Check Your Knowledge

Which one of the following are true about Nokia and Microsoft business deal?
1. Nokia is a Korean Company
2. Microsoft took over the handset business of Nokia
3. Microsoft is an American Company
4. Microsoft is the world's largest software maker measured by revenues

Select the correct answer using the codes given below:
(a) 2, 3 and 4 Only
(b) 2 and 3 Only
(c) 1 and 3 Only
(d) 1, 2, 3 and 4

This post contains the Science and Technology current affairs of September 2013. These are short Science and Technology current affairs 2013 notes for quick review.
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