Acquisition Of The Year: Microsoft Purchases Nokia For $7.17 Billion
PC and software giants, Microsoft, have made a very huge move to purchase one of the world’s leading mobile phone makers, Nokia.
Nokia, for a while now have been Microsoft’s biggest Smartphone producers ‘housing’ the Microsoft Windows OS.
According to reports, Microsoft purchased Nokia For a whooping sum of $4.99 Billion of which $4.99 billion for the company and $2.18 billion for Nokia’s menagerie of patents.
In a Press release, CEO Steve Balmer made the following announcement
‘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.”
The purchase will cause the transfer of about 32,000 Nokia employees to the new company and also joining the numbers will be Nokia’s Asha line of featured phones.
Microsoft purchasing Nokia will definitely lead to increased growth for both companies as it will not only drive forward the growth of Windows Smartphones worldwide but also protect the staggering future of both companies.
Following the acquisition, Microsoft cites a 15% boost in its shares come 2018 and that will signify a times 4 increase as compared to its present shares.
Microsoft is probably gearing up to hit the Smartphone market hard and compete strong against the likes of Apple, Google and probably ‘dieing’ Blackberry devices.
As it stands, approval of the merger is expected by the end of 2014.
Hope such a step by Microsoft will be probably managed as the future seems brighter now for them.