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Microsoft Buys Nokia Handset Division, Licenses Patent Portfolio


Microsoft has purchased Nokia’s handset division for $7.2 billion dollars. The deal also gives Microsoft a long-term license to use the Finnish company’s patent portfolio. It is designed to give the software giant the ability to compete in the handset market with Apple and Google. Microsoft paid about $5 billion for Nokia’s Lumia and Asha handset brands and services; and $2.18 billion for the licensing rights, according to the New York Times. This leaves Nokia with its location and services operation, Nokia Siemens Networks, and its technology development and licensing arm. As part of the deal, 32,000 Nokia employees—including CEO Stephen Elop—will join Microsoft. Industry observers say he is now a leading contender to replace Microsoft CEO Steve Ballmer when he retires during the next 12 months. (The Guardian)(Reuters @ the Chicago Tribune)(The New York Times) 

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