Microsoft has agreed a deal to purchase Nokia’s mobile phone unit. The technology giant will acquire Nokia’s phone business and license patents for a whopping $7.2 billion, which equals 5.44 billion Euros, quite a bold move from the Microsoft Corp into the mobile industry, which is going to help Microsoft boost up its market share in the near future!
With this deal, Microsoft Corp is trying to pose decent competition and challenges on its toughest rivals Apple Inc and Google Inc. as more technological tasks will be performed through mobile devices instead of conventional computers. The details about this historic deal unveil on Monday, which will help the software giant to concentrate more on building operating systems and applications for conventional desktop and laptop into more creative and versatile way.
Microsoft, which located in Redmond, Wash., has been pressurized as more ‘n’ more users or people are using Smartphone devices and tablet PCs to perform their routine task, which has heavily affected the overall demand of conventional PCs. However, Windows mobile application development is an attempt from the software giant to grab the attention of mobile users.
The advancement in technology and shift has caused Microsoft to perform poorly, which has dominated the PC market for more than 3 decades, and geared up Apple and Google through the immense popularity of their mobile products.
Nokia, which is based in Espoo, Finland and Microsoft have been trying hard to pave the way of success in the mobile market for many years. However, both of the technology giants have forged a partnership in the year 2011 under which Nokia’s Lumia Smartphones are running on Microsoft’s Windows software.
With this announcement, the shares of Microsoft slide almost 6% in the afternoon, which has caused looping of more than $15 billion of the company’s market value. Moreover, the investors have also shown their anger regarding the recent acquisition of the underperforming and marginalized corporation, which has lost more than $4 billion during the last year.
On the other hand, the investors in Nokia welcomed the decision of acquisition by Microsoft with such a whopping price, sending shares in the in the company over 38% higher to 4.10 euro in the early trading session on Tuesday in Helsinki.
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Microsoft made the purchase of Nokia at the same when it was in a need for a new leader. A few days back, Ballmer, 57, announced to relinquish the CEO reins within the next year in a move that many analysts regarded as Microsoft’s tactic admission, which the organization required the incorporation of a fresh blood to help it get up.
Microsoft is planning to complete the deal in the coming year. If it will be done on time, then more than 32000 employees from Nokia will work for Microsoft, which has almost 99000 employees…! What’s your take on this? Share your views in the comments…!
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