Microsoft to acquire Nokia’s devices & services business, license Nokia’s patents and mapping services

By Vijay @ 11:21am

Microsoft Corporation and Nokia Corporation today announced that the Boards of Directors for both companies have decided to enter into a transaction whereby Microsoft will purchase substantially all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services.

Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash. Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.

Building on the partnership with Nokia announced in February 2011 and the increasing success of Nokia’s Lumia smartphones, Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. For Nokia, this transaction is expected to be significantly accretive to earnings, strengthen its financial position, and provide a solid basis for future investment in its continuing businesses.

“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,” said Steve Ballmer, Microsoft chief executive officer. “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.”

“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said. “With ongoing share growth and the synergies across marketing, branding and advertising, we expect this acquisition to be accretive to our adjusted earnings per share starting in FY15, and we see significant long-term revenue and profit opportunities for our shareholders.”

“For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, Nokia Interim CEO. “After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders. Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space.”

“Building on our successful partnership, we can now bring together the best of Microsoft’s software engineering with the best of Nokia’s product engineering, award-winning design, and global sales, marketing and manufacturing,” said Stephen Elop, who following today’s announcement is stepping aside as Nokia President and CEO to become Nokia Executive Vice President of Devices & Services. “With this combination of talented people, we have the opportunity to accelerate the current momentum and cutting-edge innovation of both our smart devices and mobile phone products.”

Nokia has outlined its expected focus upon the closing of the transaction in a separate press release published today.

Source: Microsoft

Satya Nadella, born INDIAN, is in running for Microsoft top job…CEO???

By Vijay @ 02:59pm

Satya Nadella born Indian, currently heading Microsoft’s Cloud and Enterprise group, is listed among likely successors to the information technology giant’s CEO Steve Ballmer, who is set to retire within a year.

As executive vice president, Nadella “runs a group that continues to churn out growth and profits”, noted Seattle Times in a story on the start of a guessing game among Microsoft watchers since Ballmer’s impending departure was announced.

“There is no single clear successor to a lightning rod of a leader who remains one of the most identifiable CEOs in the country,” it said.

“What’s more, the next CEO may well have a far different job than the one Ballmer is vacating”, the Times said as “Once the dominant force in technology, Microsoft now finds itself chasing companies in key businesses such as Google in Web search and Apple in mobile devices.”

Nadella, 44, as head of Microsoft’s $19 billion Server and Tools Business, is credited with the transformation of the business and technology from client-server software to cloud infrastructure and services.

Before joining Microsoft in 1992, he initially worked as the senior vice president of R&D for the Online Services Division and vice president of the Microsoft Business Division, Nadella worked with Sun Microsystems as a member of the technology staff.

Listing Nadella among potential Ballmer successors, the Wall Street journal noted he “ran the Server and Tools business successfully from 2011 to this year and took over running the company’s important cloud-computing efforts in last month’s management reshuffle”.

“Indeed, in reassigning a number of top executives, that reorganization seems a tailor-made bake-off for the top job,” it said.

Nadella also figures on the New York Times’ list of current Microsoft executives who could be contenders besides Tony Bates, former director of Skype and now executive vice president of business development and strategy.

Speculation by analysts and executives about external candidates included Sheryl Sandberg, chief operating officer of Facebook; Reed Hastings, chief executive of Netflix and a former director at Microsoft; Scott Forstall, who ran iOS at Apple until last year and John Legere, chief executive of T-Mobile, it said.

Nadella holds a Master of Science degree in Computer Science from the University of Wisconsin-Milwaukee, a Master of Business Administration from the University of Chicago, and a Bachelor of Engineering in Electrical Engineering from the Manipal Institute of Technology. He is also an alumnus of the Hyderabad Public School, Begumpet.

So, Wish him all the Best…