Microsoft and Nokia entered into a partnership three years ago for making Windows Phone based smartphones. Today, Microsoft has revealed that the company is going to buy Nokia’s Devices & Services division, license Nokia’s patents, and also license and use the Nokia’s mapping service HERE in coming days. According to Microsoft, the company will pay a whopping price of around USD $7.2 billion in cash to Nokia and the transaction is expected to finalized by early 2014.


Nokia has enjoyed its reign as the top mobile seller for several years. It later joined hands with Microsoft to offer Windows Phone mobile operating system based devices in 2010. Now Microsoft is buying Nokia’s device business – to be honest, many saw this coming.

Microsoft CEO Steve Ballmer, Microsoft chief executive officer, said in an statement:

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.

Once the deal is concluded, Nokia’s key top level employees including Elop, along with senior executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber are expected to be migrated to Microsoft and will work for the company. Microsoft gets more control over a hardware company and can engage into more innovations in terms of hardware as well as software. Nokia gets more financial strength and work closely with the team that developers Windows Phone platform.

Microsoft was getting about $10 for every Nokia Windows Phone device sold as reported by AllThingsD. Quite obviously Microsoft can see the potential of earning more per device sold.