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Microsoft buys Nokia’s mobile device unit

Microsoft buys Nokia’s mobile device unit 

Through the deal, Microsoft will acquire sales and marketing related to devices and services, the mobile phones and smart devices business units, and the Lumia brand and products. The Lumia has won several awards, and has been selling steadily since its creation in 2011, with up to 7.4 million units sold in the second quarter of 2013. 

Thirty-two thousand Nokia employees will also transfer to Microsoft, including 4,700 employees in Finland and 18,300 employees involved in the manufacturing of devices.

In return, Nokia will be granted use of Microsoft’s patents for its HERE services, a mapping and location tool based on cloud-computing technology. Additionally, a new data centre will be built in Finland to accommodate the needs of Microsoft’s European clients.

Now that more people are using their mobile phones and tablets as their sole computing devices, the two companies hope to revitalize their smartphone businesses to better compete against companies such as Apple Inc. and Google Inc. 

“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,” former CEO Stephen Elop said in a press release. “With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.”

Under the agreement, Elop has stepped down as CEO of Nokia and will assume the role of executive vice-president until he transfers to Microsoft. Once the transition is complete, he will become executive vice-president of Microsoft. In the meantime, Chairman Risto Siilasmaa has stepped in as interim CEO of Nokia.

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