Microsoft Buys Nokia's Phone Side for $7.2B
And it may have nabbed a new CEO in the process
By Rob Quinn, Newser Staff
Posted Sep 3, 2013 1:59 AM CDT
Steve Ballmer and Stephen Elop, president and CEO of Nokia, introduce Nokia's newest smartphone, Wednesday, Sept. 5, 2012 in New York.   (AP Photo/Mark Lennihan)

(Newser) – Two firms largely left in the dust by the smartphone era are set to become one with Microsoft's $7.2 billion acquisition of Nokia's cell phone business. "It's a bold step into the future," said Microsoft CEO Steve Ballmer, who plans to step down within a year. Nokia chief Stephen Elop—a former Microsoft exec—will be among the 32,000 Nokia employees transferring to Microsoft, and the New York Times thinks the deal makes him Ballmer's most likely successor.

Ballmer wouldn't speculate on that in an interview with The Verge, saying that the board was considering both internal and external candidates. "Stephen Elop happens to be going from external to internal." He also revealed that the deal was in the works before his resignation announcement. The deal—Microsoft's second-largest, after its 2011 Skype buy—will be finalized early next year unless it is blocked by regulators or Nokia shareholders, USA Today reports. It plays into Microsoft's strategy of becoming more of a devices company than a pure software one, the Wall Street Journal notes. Both companies have fallen behind in the smartphone wars, with Microsoft's current marketshare at just 3%, and Nokia's sales in an extended nosedive.

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Sep 3, 2013 12:10 PM CDT
Windows Phone has been selling well, comparatively speaking, and I am seeing more of these devices out in public. And Delta Airlines has announced they are issuing flight attendants Nokia Windows Phones for in flight sales among other airline operational tasks. Pilots will get Windows tablets as well. I wonder how much that one deal had on this buy out.
Sep 3, 2013 10:40 AM CDT
wow, Microsoft buys a company that is in a downward spiral of its own, paying what is probably way too much... "innovate?!? innovate?!? HELL NO! We're Microsoft, we BUY OUT! We don't "innovate" anything!!"
Sep 3, 2013 9:56 AM CDT
I have a Nokia Lumia 920 it runs windows phone 8 and its great. I think if people would stop being iClones they would see what great phones these companies make.