Microsoft to acquire Nokia's handset business for $7.2bn

Reuters
Finland's Nokia, once the undisputed leader in mobile phones, has been
struggling to respond to the challenge from smartphone makers such as
Apple and Samsung.

HELSINKI:
Microsoft Corp onTuesday said it would buy Nokia's mobile phone
business for 5.44 billion euros, and the Finnish firmsaid its CEO,
Stephen Elop,would join Microsoft when the transaction closed.
Finland's Nokia, once the undisputed leader in mobilephones, has been
struggling to respond to the challenge from smartphone makers such as
Apple and Samsung.
Analysts say Elop's bold bet in 2011 to adopt Microsoft's untested
Windows Phone software has yet to pay off.
The deal is expected to close in the first quarter of2014 and is
subject to approval by Nokia's shareholders and regulatory approvals.
Nokia partnered in 2011 with Microsoft and uses Microsoft's Windows
software to run its mobile phones.
"It's a bold step into the future - a win-win for employees,
shareholders and consumers of both companies," Microsoft's outgoing
CEO, Steve Ballmer, said in a statement.
"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 entirefamily of devices and
services."
Nokia said in a statement itexpected that Elop, along with senior
executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and ChrisWeber,
would transfer to Microsoft when the deal was concluded. It did not
say what roles they would take at Microsoft.
Nokia board chairman RistoSiilasmaa would take over CEO duties while
the Finnish firm looked for a new CEO, it said.
Elop, a Canadian hired by Nokia in 2010 from Microsoft, has been one
ofthe favourites to take over as Microsoft chief when Ballmer steps
down.