Microsoft Buys Nokia for 5.5 Billion Euros

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There are some pieces of news which don’t require much of a headline, and this is one of them. Microsoft has announced it will purchase Nokia’s Devices and Services business for the amount of 3.79 billion euros, and its patent portfolio for 1.65 billion euros.

The deal still has to meet with the approval of Nokia‘s shareholders, and various regulatory bodies, but once it’s complete this side of Nokia will be integrated into Microsoft. It has been confirmed Nokia CEO Stephen Elop will return to Microsoft to head the new devices department, while other notable Nokia executives such as Jo Harlow, Timo Toikkanen and Juha Putkiranta will also join Microsoft in new, but similar roles.

Nokia and Microsoft have been partners for two-and-a-half years, after Nokia chose Windows Phone as its exclusive smartphone operating system, so the sale is the next logical step in their relationship, and has been rumoured for some time. Nokia, despite coming up with some great hardware, has been struggling to make an impact against Android and iOS devices.

In a Microsoft blog, the sale is called, “A bold step into the future, a huge leap forward on our journey.” CEO Steve Ballmer, who is due to step down from the role in the next 12 months, said it’s “a smart acquisition for Microsoft, and a good deal for both companies … We’ve all seen the amazing work that Nokia and Microsoft have done together.”

Should the sale go through without any problems, it’s expected to be completed during the first few months of 2014.

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