Microsoft has bought out Nokia's devices and services for $7.2 billion (£4.6 billion), acquiring the company's Lumia brand and a license for all of Nokia's patents. The buy out will see around 32,000 Nokia staff moving from the Finnish company to Microsoft.
The deal is set to be completed by the end of the first quarter of 2014, and sees Microsoft's outgoing boss Steve Ballmer appointing Nokia CEO Stephen Elop as chief of Microsoft's new expanded Devices team, which also counts Xbox among its range. Currently, Julie Larson-Green is overseeing the launch of Xbox One and Surface, running the Devices and Studios team, but will join Elop and work alongside him once the Nokia deal is closed.
Microsoft's partnership with Nokia goes back to February 2011, with the handset manufacturer making Lumia smartphones with the Windows Phone operating system. It's hoped that this new deal will enable Microsoft to push Windows Phone further in a competitive market where Apple and Samsung offer stiff competition.
"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," Ballmer stated. "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."
You can read the full email from Ballmer regarding the Microsoft-Nokia deal over on
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