After two years of being in partnership with each other in the mobile space, Microsoft has purchased Nokia's Devices & Services business for $7.2 billion, in a move which Nokia believes will significantly increase Nokia's earnings. The transaction is expected to close in the first quarter of 2014, subject to the apprival of Nokia shareholders, regulatory approvals and other closing conditions. On the move, Risto Siilasmaa, Chairman of the Nokia Board of Directors and interim CEO as of the decision said:
After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders.
As part of the transaction Nokia also agrees to grand Microsoft a 10 year non-exclusive license to its patents at the time of closing, and Microsoft will grant Nokia reciprocal rights related to HERE services. Nokia will also grant Microsoft an option to extend the patent agreement.
As part of the transaction, Nokia will grant Microsoft a 10 year non-exclusive license to its patents as of the time of the closing, and Microsoft will grant Nokia reciprocal rights related to HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement to forever.