In one of his last as head the head of Redmond-based Microsoft, former CEO Steve Ballmer, purchased the mobile device division of Nokia for $7.2 Billion dollars. The purchase was contingent on approvial by both shareholders at Nokia and governmental regulatory agencies. After 8 months Microsoft's new CEO Satya Nadella and former Nokia CEO and current Microsoft VP Stephen Elop announce, in a blog post Yesterday, that the deal received final approval from all parties involved.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
The finalization of the deal make the Redmond-based Giant the second largest mobile phone manufacture behind Korean giant Samsung. According to the latest figures put out by comScore, Microsoft currently has a 3.4% share of the mobile market making them a distant third. Only time will tell though if controlling 14% of the manufacturing market can translate into a boost in that meager showing in the mobile market.
"The deal alone doesn't immediately solve the problem" for Microsoft, Sami Sarkamies, an analyst at Nordea Bank in Helsinki, told Bloomberg. "Now they have to roll up their sleeves and start working to play catch-up."
With the acquisition of Nokia's mobile division Microsoft also inherits the Nokia X line that includes smartrphones running a forked version of the android operation system. The line will put Microsoft in the unique position of being one of their own competitors and running two separate app stores. In a way though Microsoft has benefited from their competition since they do get a royalty from many of the manufacturers that make android-based smartphones.
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