Microsoft went on a shopping spree, buying up Nokia's phone and services division for a cool $7.2 Billion dollars. Nokia's line of phones, probably the most popular phones running the Windows OS, are now the property of the PC and Software giant. This move is being made to facilitate growth and improve Microsoft's position in the smartphone market. In addition to the buy, some suits are going to be shifting spots in the hierarchy of Nokia with most staying in the company, but maybe one, that being now-former Nokia CEO Stephen Elop, moving into the big chair at Microsoft once now-CEO Steve Ballmer vacates his spot.
The purchase breaks down like this. Microsoft is paying $5 Billion for pretty much all of Nokia's phone division. $2.2 Billion of the purchase price will go towards acquiring and licensing Nokia's numerous patents. As alluded to in the opening paragraph, where things get interesting is the moving of pieces in both companies hierarchies. The worst kept secret in the tech industry is the fact that Microsoft's CEO Steve Ballmer will be leaving his post sometime in the near future. It is believed that Nokia's former CEO Stephen Elop, who is getting shifted to Executive Vice-President of the devices and services division, could be next in line for the big job at Microsoft. While that remains to be seen and will play out over time, it certainly is interesting times at Microsoft.
It'll be interesting to see what Microsoft can do to boost Nokia's promising line of phones. While not having the reach of IOS or Android, the Windows OS does have a lot of potential. It will be very interesting to see what greater integration will mean for these two mobile giants, and if, with their powers combined, they can finally tackle their common enemy, Apple and Samsung.