Microsoft Reaches Deal to Buy Nokia’s Cellphone Business
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Henrik Kettunen/Bloomberg via Getty Images(NEW YORK) — Microsoft has struck a deal to buy Nokia’s cellphone and services business, paying $7.2 billion.
“We think this is win-win for employees. Win-win for shareholders. And win-win for customers of both companies,” Microsoft CEO Steve Ballmer said of the acquisition.
The deal is a bold attempt by Microsoft to join the front ranks of the global smartphone industry, now dominated by Samsung and Apple.
“I think it gives Microsoft a very good opportunity to push its Windows phone more into the public eye,” says Matt Smith, associate editor of the tech website Engadget.
Nokia was already Microsoft’s closest partner in smartphones, but its share of the market has sharply declined in recent years. The share price of the Finnish phone maker shot up 40 percent Tuesday morning on word that Microsoft would take over much of its business.
“Through our partnership we’ve already accomplished so much. And yet clearly the opportunity ahead is remarkable. And I’m incredibly optimistic about what we can achieve together,” Ballmer said.
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