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Microsoft Acquires Nokia's Hardware Business For $7.2B, Canadian Elop Re-Joins Microsoft

Nokia-Elop-BallmerFor months the Internet was buzzing as to whether Microsoft would acquire Nokia, as they continue to struggle in the very competitive phone business. After close to half a year of discussions and multiple meetings the deal has come to a close, Microsoft has acquired Nokia‘s Devices & Services business, license Nokia’s patents for a total of $7.17 billion last night.

Exiting CEO of Microsoft Steve Ballmer added:

It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies. Bringing these great teams together will accelerate Microsoft’s share and profits in phones, and strengthen the overall opportunities for both Microsoft and our partners across our entire family of devices and services. In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution.”

Of course the deal is still subject to board and regulatory approval, but this is probably a slam dunk.  As part of the deal, Nokia’s CEO and Ancaster Ontario-born Stephen Elop will be stepping down and become the Nokia Executive Vice President of Devices & Services at Microsoft.