Microsoft To Buy Nokia's Handset Business For $7.2 Bln

Category: Technology / Sep 03, 2013 2:03PM EDT

Microsoft said on Tuesday (September 3) it will buy Nokia's phone business and license its patents for 5.44 billion euros ($7.2 billion), making its boldest foray yet into mobile devices and bringing Nokia executive Stephen Elop back into the fold.

Elop, a former Microsoft executive, will return as Microsoft's board ponders a successor to current CEO Steve Ballmer, who will depart sometime in the next 12 months after initiating a reorganization intended to transform the software company into a devices and services group in the mould of Apple Inc

The sale of Nokia's phone business marks the exit of a 150-year-old company that once dominated the global cellphone market and remains one of Europe's premier technology brands, even though Apple and Samsung Electronics' ascendancy all but reduced it to irrelevancy in Asia and North America in recent years

Nokia - reduced to its networks business, navigation offerings and patent portfolio after the sale - is still the world's No. 2 mobile phone maker behind Samsung, but it is not in the top five in the more lucrative and faster-growing smartphone market.

Video Credit: Reuters