What had been in rumors for a very long time is finally gonna happen in the coming months, Microsoft is going to acquire Nokia’s Device and Service Section for 7.1 billion cash. This is gonna be officially released by both Nokia and Microsoft via Press and Investors conferences on 3rd Sept. Now this merger might brighten the future for Windows Phone in the coming days, and we can expect a few surprises from the two.
To be true this might not be such a big surprise as both the companies had tried to do this earlier as well in the month of June, but it had failed. Now both the companies have finally agreed upon and CEOs Steve Ballmer and Stephen Elop have together released an open letter for the public about accelerating the Windows ecosystem. You can read the official announcement as released by Microsoft here having worth reading statement from both the companies.
We could see this acquisition as a little analogous to Motorola becoming a Google Company, which proved to be a boon for both the companies. We can expect Lumia phones coming with a branding saying “A Microsoft Company”. On one hand, Nokia will be reduced to a smaller company so it can spend all its newly acquired cash and focus to networking, mapping & location, and advanced technologies. And on the other hand, Microsoft becomes a much bigger giant with much more licences and products to take care of.
One of the biggest changes we will see is the abnegation of Stephen Elop as Nokia CEO and moving on to Microsoft as the lead in Microsoft’s Device team. Whereas for Nokia, it will have Risto Siilasmaa as its interim CEO.
The most astonishing fact of this acquisition still remains that earlier Microsoft bought Skype for around $8.5 billion but shelled out only $7.1 billion for Nokia’s most important asset.
Lastly, this acquisition finally clears the very little hope that people had that Nokia might resort to Android because of its competition with other iOS and Android devices. But now Nokia (or lets call it Microsoft) might just come out to be a very very strong contender, having the awesomeness of both Nokia and Microsoft, which will contend with its new devices like the Nokia 1020.