Taking inspiration from success of its rival Apple, American multinational software corporation Microsoft has declared that it is buying Finnish Multinational Corporation, Nokia’s phone business and its patents for 5.44 billion euros ($7.2 billion).
Phone maker Nokia that had once dominated the global market, failed to rise to top position after losing its business to rivals Apple and Samsung Electronics. Retiring CEO of Microsoft, Steve Ballmer wanted to takes on gadgets and services companies like Apple by this move.
However everyone is not happy with the deal as the shares of Microsoft slid by 6 percent, shaving off $15 billion of the company’s market value. Investors protested the acquisition of a corporation which lost more than $4 billion in 2012.
Nokia Company’s current CEO Elop, who was once part of Microsoft’s business software division till 2010, will now return to Microsoft as head of its mobile devices business. Elop is being discussed as a potential replacement of retiring CEO Steve Ballmer.
However Finnish media, not happy with the developments, labeled him as a Trojan horse who handed over the reins a European technology power to American hands.
Carolina Milanesi, an analyst at Gartner said that Microsoft buying Nokia comes at the right time as it cannot walk away from smartphones and the vendors supporting Windows Phone is fading fast.
The deal is most likely to be concluded in the first quarter of 2014.