It’s all over the news stream today. Microsoft and Nokia have reached an agreement whereby Microsoft is acquiring all of Nokia’s Devices & Services business, including license for Nokia’s patents and license and use of Nokia’s mapping services. The deal was sealed at a whooping $7.1 billion.
Under the terms of the deal, Nokia is set to receive EUR 3.79 billion for its Devices & Services business, and EUR 1.65 billion for the licensing of Nokia’s patents, all amounting to EUR 5.44 billion or roughly $7.1 billion. For those of you who are asking where Microsoft is getting that money, well according to the Microsoft, it will be drawn from the company’s overseas cash resources. The deal is scheduled to be done by the end of Q4 2014. This is of course still subject to approval of Nokia shareholders and other legal and business conditions that still need to be fulfilled.
All those being said, the question which probably all of us have right now is – who wins and who lose in this deal? Is it the right time for Nokia to throw in the towel with regards to its mobile business? Did Microsoft made the right decision at all? That remains to be seen. What’s interesting to note here is whether this deal will push Microsoft’s mobile business into different heights.