Microsoft has bought Nokia’s mobile phones business for £4.6 billion.
The titanic deal will reshape the entire mobile technology landscape.
Despite slowly increasing sales of devices running its Windows Phone, Microsoft has struggled in the mobile devices market in recent years. It recently lost close to $1 billion on its Surface RT tablets, which were received poorly.
Meanwhile Nokia’s once dominant position in mobile phones has been brought virtually to its knees after years of failing to respond to the advance of Apple’s iPhone and Google’s Android OS. Two years ago it made a decision to focus exclusively on Windows Phone with its Lumia line of smartphone devices – and again, despite gradually increasing sales it is yet to make a real dent in the market share of either Apple or Samsung.
The companies said in a joint statement that the deal will be finalised in 2014, and that in total about 32,000 of Nokia’s employees will now work for Microsoft.
Nokia will also license its patents and its maps service ‘Here’ to Microsoft as part of the deal.