Nokia Mobile Phone Business Bought By Microsoft

Finnish mobile phone manufacturer Nokia has reportedly been bought by Microsoft.

In a £6.4 Billion (€5.44 Billion, $US7.2 Billion) cash deal due for completion early in 2014 Microsoft will acquire Nokia's mobile phone devices business, services division, mapping service "Here", and become licensed to use Nokia's patents for a period of 10 years with an option to extend patent licensing indefinitely.

While Microsoft will be granted a license to use Nokia's patents, Nokia will retain its patent portfolio.

Microsoft will pay Nokia seperately for a four year license for use of the "Here" mapping service from Nokia.

Nokia will assign to Microsoft a long term patent licensing agreement with Qualcomm - a manufacturer of mobile and smartphone chipset manufacturer of the Snapdragon series chipsets.

This purchase build upon a 2 year joint venture between Nokia and Microsoft seeing Nokia handsets use the Microsoft Windows Phone Operating System on their mobile phone handsets, particularly in the Nokia Lumia range of handsets which have won a number of awards and experienced growing sales.

The deal is believed to put the combination of Nokia and Microsoft in a much stronger position to compete with Apple and Samsung with a more positive outlook in the longer term, with minimal impact short- to medium-term.

Nokia has, perhaps, struggled to compete effectively in the Smartphone market - this deal will help move the position of Nokia and Microsoft forward in this respect.

The deal is believed to comprise two general areas - £4.46 Billion (€3.79 Billion, $US 5.02 Billion) on Nokia's handsets, and £1.94 Billion (€1.65 Billion, $US2.18 Billion) on the use of Nokia's Patents on a 10 year license with the option to extend the use of Nokia's Patents indefinitely.

Nokia will however continue to own the Nokia brand while Microsoft will acquire the Asha brand - Asha is a model series of Nokia handsets.

Part of the deal is believed to include around 32 000 Nokia employees becoming employees of Microsoft.

As more news is made available on this topic we propose to update this news article - watch this space !