Following the earlier news, that Microsoft and Nokia announced this morning that Microsoft will purchase substantially all of Nokia's Devices & Services business, license Nokia's patents, and license and use Nokia's mapping services, Steve Ballmer, CEO of Microsoft and Stephen Elop, CEO of Nokia have issued an open letter to consumers which should explain the plans and the future for the merged company. Under the announced terms of the agreement, Microsoft will pay 3.79 billion Euro to purchase substantially all of Nokia's Devices & Services business, and 1.65 billion Euro to license Nokia's patents, for a total transaction price of 5.44 billion Euro in cash.
Nokia and Microsoft have always dreamed big - we dreamed of putting a computer on every desk, and a mobile phone in every pocket, and we've come a long way toward realizing those dreams.
Today marks a moment of reinvention.
Nokia has an identity spanning 150 years of heritage, innovation, excellence, and change which began and will continue in Finland and around the world. From humble beginnings as a paper mill factory, to manufacturing rubber boots and car tires, and then to mobile phones, reinvention is in Nokia's blood.
Nokia will now write its next chapter, focused on enabling mobility through its leadership in networking, mapping & location, and advanced technologies.
For Microsoft as well, today is a bold step into the future, a huge leap forward on our journey of creating a family of devices and services that delight people and empower businesses of all sizes.
Our partnership over the past two and a half years, which combined our respective strengths to build a new global mobile ecosystem, has created incredible results: award-winning phones and amazing services that have made Nokia Windows Phones the fastest-growing smartphones in the world.
Building on this successful partnership, we announced some important news today: an agreement for Microsoft to purchase Nokia's Devices & Services business, to deliver more choices, faster innovation, and even more exciting devices and services to our customers.
Today's agreement will accelerate the momentum of Nokia's devices and services, bringing the world's most innovative smartphones to more people, while continuing to connect the next billion people with Nokia's mobile phone portfolio.
With the commitment and resources of Microsoft to take Nokia's devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between.
We will continue to build the mobile phones you've come to love, while investing in the future - new phones and services that combine the best of Microsoft and the best of Nokia.
Nokia and Microsoft are committed to the next chapter.
Together, we will redefine the boundaries of mobility.
Steve & Stephen
Nokia expects that Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber would transfer to Microsoft at the anticipated closing of the transaction.
Nokia has outlined its expected focus upon the closing of the transaction in a separate press release published today.
Cheers ~ Arne