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Microsoft acquires Nokia’s Devices and services business for EUR 5.44 billion licenses Mapping and patents

Holly molly who saw this one coming ? Microsoft has just announced the acquisition of Nokia‘s Devices & Services business alongside licensing it’s mapping an patents portfolio for €5.4Billion in cash today. Many like me have guessed that this may have been the big plan all along since the day Stephen Elop was appointed CEO of the troubled phone maker exactly 3 years ago in one week. After the successful launch of several Nokia Windows Phone devices in the past couple of months and the continued growth of Windows Phone’s market share todays seems to be the right time for Microsoft to start a new chapter by acquiring the best Phone maker in the world and securing the biggest patent portfolio in smart device patents.

Here’s are the principal terms of today’s acquisition deal:

  • Microsoft is spending about EUR 3.79 billion to acquire Nokia’s core cellphone business. Of that EUR 1.65 billion is for Nokia’s devices business
  • Microsoft will pay $2.18 billion to license Nokia’s intellectual property
  • Nokia’s patent portfolio includes some 8,500 design patents ranging from mapping to network/cell technologies with approximately 30,000 utility patents and patent applications, ownership of the Lumia & Asha brands and a ten year license to you the Nokia brand on feature phones. (this means that Microsoft’s Windows Phones will only be branded Lumia and not Nokia..strange I know..)
  • About 32,000 Nokia employees are expected to transfer to Microsoft as part of the deal. Off those 18,300 are “directly involved in manufacturing”
  • 56,000 Nokia employees will remain at the company once the deal has closed
  • Microsoft acquires rights equivalent to ownership for the HERE Mapping apps
  • Nokia will continue to improve these apps for other platforms
  • 4 year- agreement for mapping data and services: Nokia will provide MS with mapping data and services in exchange of annual payments Microsoft will combine Nokia map data with other sources and also make it available to Windows AZURE users with an additional fee.?
  • Microsoft’s gross margin on sales of Nokia’s Windows Phone handsets before the deal: less than $10. Expected to grow to $40 after the deal.
  • Microsoft will build a $250M data center in Finland for consumer purposes (AZURE too?)
  • Finland will become a core base of Microsoft in Europe and also the center of it’s mobile hardware R&D and manufacturing.
  • Stephen Elop will step down and CEO of Nokia and head back to Microsoft as the EVP of Devices a job title that was just recently awarded to Julie Larsson Green which will now basically only handle the upcoming fall hardware launches (XBOX One, Surfaces) and report directly to Elop and Ballmer.
  • Stephen Elop just went from being and external to an internal candidate for the CEO job that Steve Ballmer will leave in the next 12 Months.
  • Nokia’s top designer Marko Ahtisaari will leave the company in November to “pursue entrepreneurial opportunities,”
  • Continue reading Microsoft acquires Nokia’s Devices and services business for EUR 5.44 billion licenses Mapping and patents →

    Major Nokia Here Drive + and Here Transit updates coming to all Windows Phone 8 devices this week

    As I tweeted a last month Nokia is set to finally get the Here Drive + app out of Beta with the inclusion of Life Traffic support and the My Commute feature. The company has also officially announced today a major update to the Here Transit application with a modified /improved UI and the availability of Here Drive + to all Windows Phone 8 handsets (HTC, Samsung etc..).

    Continue reading Major Nokia Here Drive + and Here Transit updates coming to all Windows Phone 8 devices this week →

    Nokia updates offline maps for all Windows Phones

    Nokia has pushed out a global update to it’s HERE Maps for all Windows Phone today adding tons of new data including better maps for Tunisia, Senegal and Cyprus, building outlines in Croatia, Public transit in Hong Kong, Macau and Taiwan and more Truck Attributes worldwide. It should also be noted that devices running Windows Phone 8 GDR2 (which means only the Nokia Lumia 925 right now) will only be prompted to download the updated data of the maps currently installed and not the whole maps dataset as it’s has been the case on Windows Phone 8.

    Just head over to your phone’s Settings -> Maps and download the updates.

    Continue reading Nokia updates offline maps for all Windows Phones →

    Nokia Maps, Drive +, Transit,City Lens updated and rebranded to HERE. No longer exclusive to Nokia Lumia handsets

    Today’s a big day for all Windows Phone 8 users with the start of MWC in Barcelona and Nokia’s Keynote which just ended a few minutes ago. The big news besides the introduction of the Nokia Lumia 720 and Lumia 520 is the updated and rebrand of Nokia’s mapping services which will now all sport the HERE name. This means that Nokia Maps is now Here Maps, Nokia Drive + is Here Drive + etc.

    But it get’s better: they are now available to ALL Windows Phone 8 users in US, Canada, Mexico, UK, France, Germany, Italy and Spain! That’s right folks, Nokia has decided to make a really bold move today to help the Windows Phone ecosystem. You no longer need to own a Nokia Lumia handset to have access to these awesome applications.

    Continue reading Nokia Maps, Drive +, Transit,City Lens updated and rebranded to HERE. No longer exclusive to Nokia Lumia handsets →