It's been talked about for months, but today they made it official: Microsoft bought Nokia's phone business to the tune of $7.2 billion. Both companies had been given the go ahead for the merger from the European Commission and the US Department of Justice a while ago, but on Monday they got the approval from China. It was a logical move for Microsoft since Nokia had been the best partner for Windows phone-which according to the International Data Corporation, is the fastest-growing platform among the leading operating systems in the fourth quarter of 2013.
Industry sources are speculating that Microsoft wishes to expand on that relationship and leverage the hardware to target the affordable mobile devices market, with the potential to be a $50 billion annual opportunity. Although Microsoft EVP Terry Myerson has made a point that there won't be exclusivity and all partners will be treated the same.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft chief executive Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
The new firm will be called Microsoft Mobile Oy.