Microsoft to buy Nokia $ 7.17 Billion

Microsoft has just announced that it has purchased the Nokia, which will only take this purchase and the hardware division and its services division of its patents which incidentally is the core product of Nokia. This makes the Nokia leaving only 3 divisions namely NSN (network infrastructure), HERE (mapping), and Advanced Technologies.

As part of the transaction, Nokia CEO Stephen Elop today will resign and joined Microsoft, where Stephen Elop is likely being groomed to replace Steve Balmer who will step down from the CEO of Microsoft. In addition to displacement CEO, as many as 32,000 thousand employees will move from Nokia to Microsoft including 18,300 manufacturing employees.

 

Nokia price to be paid Microsoft for U.S. $ 7 billion sounds large, but in fact the price is very cheap considering 5 years ago (september 2008) Nokia's market cap of more than U.S. $ 75 billion. Moreover, Nokia bought much cheaper than when Microsoft bought Skype, which reached U.S. $ 8.5 billion.

Purchase Nokia likely intended to strengthen Microsoft's Windows Phone 8, so that ammunition can be challenging mobile giants like Apple (iOS), Google + Motorola (Android) and also Samsung.