Microsoft to buy Nokia's devices and services unit
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Microsoft is buying Nokia’s devices and services business for 7.2 billion U.S. dollars in an effort to expand its share of the smartphone market.
Microsoft will pay 5 billion U.S. dollars for the Nokia unit that makes mobile phones, including its line of Lumia smartphones. It is also paying 2.2 billion U.S. dollars for a 10-year license to use Nokia’s patents.
Microsoft says it is acquiring Nokia’s Asha brand of low to mid-level smartphones and will license the Nokia brand for current Nokia mobile products.
Both companies say in a joint statement this provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia’s mobile phones to serve as an add on to its Windows Phone.
The companies also say when the deal is finalised in early 2014, about 32,000 Nokia employees will transfer to Microsoft.