REDMOND, Wash. (AP) — Microsoft Corp. is buying Nokia Corp.'s devices and services business, and getting access to the company's patents, for a total of 5.44 billion euros ($7.2 billion) in an effort to expand its share of the smartphone market, the companies announced late Monday.
Microsoft will pay 3.79 billion euros ($5 billion) for the Nokia unit that makes mobile phones, including its line of Lumia smartphones that run Windows Phone software.
Microsoft is also paying 1.65 billion euros ($2.2 billion) for a 10-year license to use Nokia's patents, with the option to extend it indefinitely.
"We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together," Microsoft CEO Steve Ballmer said in a memo to employees. "We are receiving incredible talent, technology and IP (intellectual property)."
Microsoft said it is acquiring Nokia's Asha brand of low to mid-level smartphones and will license the Nokia brand for current Nokia mobile products.
"This element provides Microsoft with the opportunity to extend its service offerings to a far wider group around the world while allowing Nokia's mobile phones to serve as an on-ramp to Windows Phone," the companies said in a joint statement.
Redmond, Wash.-based Microsoft said it will draw from its overseas cash resources to fund the transaction. When the deal closes in early 2014, about 32,000 Nokia employees will transfer to Microsoft, the companies said.
Nokia, based in Espoo, Finland, said Stephen Elop will step down as president and CEO as the deal moves forward. The companies said he is expected to transfer to Microsoft, along with several Nokia vice presidents.
Nokia said Chairman Risto Siilasmaa will stay in his current role and assume the duties of interim CEO.
Nokia plans to hold a news conference in Finland on Tuesday morning to discuss the deal.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Hundreds of workers, politicians and residents of Chautauqua County rallied in Dunkirk calling on state regulators to approve plans for NRG to convert and reopen a power plant.
Buffalo police homicide detectives have identified an Eggertsville man who was shot and killed early Saturday morning.
Seventy-two years after the attack that launched the US into World War II, Western New Yorkers remembered the fatal day at Pearl Harbor Hawaii.
Volunteers at Buffalo’s Salvation Army created holiday cards and gift bags for the seniors at the Golden Age Center.
Buffalo Police have arrested 26-year-old Nicholas Finnegan of South Buffalo and charged him with pushing Russ Ross to his death.
The abandoned puppy in the Town of Evans was actually turned in by the dog's owner.