It’s official. Microsoft and Nokia have signed a contract whereby Microsoft will acquire all Nokia’s devices & services business, license Nokia’s patents and mapping services for 5.4 billion euros in cash.
The acquisition is expected to close by the first quarter of 2014, and Microsoft will pay 3.79 billion euros for the production assets and 1.65 billion euros for the entire Nokia patent portfolio.
A reasonable choice
From the perspective of Nokia, it is an obvious choice to bring value into the hands of shareholders within a reasonable time and continue betting on the Windows Phone that it would be a success but in long run only. Stephen Elop has worked to give the maximum possible value when Symbian was considered a “burning platform,” he rebuilt the foundation of the group and rejected Google’s ambitions, given character and peculiarities. Thus, a red carpet has drawn to Microsoft, to facilitate the operation.
By contrast, Microsoft has made the reasonable and strongest move to put both feet into the world of mobile devices, presenting itself as a protagonist with the most prestigious brand in hand. The Lumia series will no longer be a compromise in trying experiments, but rather will be a rematch of flag, the symbol of a bold investment that will have the responsibility to provide the most important opportunities to Microsoft.
Now, no one will ask anymore why Stephen Elop didn’t choose Android instead of Windows Phone because the answer would be different from the past, when Nokia preferred their own uncritical monopoly against the Android world. At the same time, Steve Ballmer seems to close his own path in Microsoft eagerly with the acquisition of Nokia that closes a process of the redefining company and provides the basis of reconstruction for the Redmond’s ambitions.
Nothing changes, where Microsoft and Nokia are already working and will continue to do so. However, everything changes in perspective – the idea of a Lumia tablet assumes greater importance now, but it will recite the perspective of a new equilibrium with Surface tablets. Windows Phone will continue to be licensed, but those who choose the path of Windows Phone 8 will have a rival directly in the production of devices. Microsoft investments in Nokia to subsidize development now remain in the house, making it even more important as the first Windows Phone ecosystem. The resources for developers will be more ordered with a greater focus and therefore, the marketplace would also draw specific advantages.
Stephen Elop leaves the Nokia to go directly where it came from. He will be among the top Microsoft executives and will be responsible for guiding the development operations of the unit. With Elop, Marko Ahtisaari, Jo Harlow, Juha Putkiranta, Timo Toikkanen and Chris Weber will also take on leading roles in Microsoft while Risto Siilasmaa will be the new interim CEO of Nokia, whose work will be to give a new identity to a historical group of great culture and strong roots in Europe.
All 32,000 Nokia employees will be microsofties now. Microsoft has currently planned to retain the whole body of inherited human resources in the transaction because the Software maker will be developing a new data center in Finland which would also create additional open positions.