The deal gives Microsoft access to Nokia's smartphones and its design team as it struggles to compete against rivals after missing the mobile revolution. Steve Ballmer, who a few weeks ago announced his retirement from Microsoft after 30 years, said: "It's a bold step into the future — a win-win for employees, shareholders and consumers of both companies.
"Bringing these great teams together will accelerate Microsoft's share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services."
This is Microsoft's first big play since Mr Ballmer's departure was announced. He approached the Finnish company in for an "open dialogue" on a deal in February this year, Nokia's chairman and interim chief executive, Risto Siilasmaa, said on Tuesday. Former Microsoft executive Mr Elop, who will move to the software company when the deal is closed, is among those touted to replace Mr Ballmer. Labrokes said he was now 4/6 favourite to take the role, with Sheryl Sandberg 7/1 and Steve Sinofsky 12/1.
The Finnish business used to dominate the mobile market with its virtually indestructible handsets. However, it was slow to develop smartphones and lost ground to Apple and other players like Samsung. Mr Elop, who joined the company from Microsoft in 2010, famously compared Nokia to a man on a burning oil platform who had no choice but to jump.
Under his leadership, Nokia struck a deal to join forces with Microsoft to produce the Lumia series of smartphones, based on Microsoft's Windows operating system. The handsets have attracted a moderate level of critical success but sales have been slower than hoped. Microsoft said the deal would enable the company to build on its 2011 partnership with Nokia and increase its share of the smartphone and tablet market through faster innovation.
Source: The Telegraph
