Sep 3, 2013

Microsoft Buys Nokia's Devices and Services Business, My Thoughts

Today marks a very significant disruption in the mobilephone industry, the biggest brand in technology industry, Microsoft Corporation, acquiring the devices and services business of the biggest brand in mobilephone industry, Nokia Corporation, in a deal that will go down as one of the largest buy-out in history.

A whopping 3.79 billion Euro pay off and a billion Euro more for Nokia's licenses and patents and the use of Nokia's mapping service were at stake. To include as well in the agreement is the licensing of Nokia as a brand for 10 years, the transfer of 32,000 people and the making of Finland as a home for a new data center that will serve Microsoft consumers in Europe. The company said it would invest more than a quarter-billion dollars in capital and operation of the new data center over the next few years, with the potential for further expansion over time.

So basically, Nokia as a brand will subsists because Microsoft will still carry it in their future devices, and Nokia as a company as well because they still have NSN, HERE and most importantly Advanced Technologies that handles its patents and other portfolios, though, more than 90% of its current business will be streamlined. Nokia will stay as a significant player in the industry handling more on this patents and licenses in the coming years.

Thoughts, I'm not really shocked with the merger because rumors had been circulating in the lurk for quite sometime. I already expected it to happen anytime soon. I also had no qualms with Microsoft because they are no less, the biggest company in the tech industry so I'm pretty confident that Nokia's Devices and Services Business is in good hands.

Microsoft being the biggest would means that Nokia as a brand will have all the resources needed to further improved the products and they will be backed-up by Microsoft's leading engineers and designers, so its a win-win situation for the brand and for consumers. I believed that they could come up with more better and high quality products with Windows Phone as a platform, being executed more efficiently than ever.

I do hope though that Microsoft will carry on with Nokia's legacy of offering unparalleled after sales services and high quality products at a reasonable price. Its among the many reasons why I'm supporting the company up to now. Anyways, to all my friends in Nokia, Good Luck and God Speed!

Indeed, the next chapter of the battle to mobilephone supremacy had just begun!


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