Microsoft will fork out a whopping €3.79 billion to purchase “substantially all” of the Nokia business, which will include their crown jewel of smartphone operations. Not only that, another €1.65 billion will have to be forked out to license Nokia’s patents, resulting in a converted price of $7.18 billion. Stephen Elop, Nokia’s CEO, will not be out of a job as he and several other executives will be absorbed into Microsoft as part of the deal.
Could Mr. Elop eventually end up as Microsoft’s CEO? He was, after all, a former Microsoft executive. This acquisition is evidence that Microsoft knows they need a far stronger hand if they were to play an important role in the mobile phone business, with iOS and Android mobile operating systems being the two 800 lbs gorillas at the moment. [Press Release] — Read the open letter from Steve Balmer and Stephen Elop