All numbers accurate as of 9/3/13 1:12 PM EST. However, they may change as the trading session progresses.
Microsoft announced that it was planning to pay the equivalent of $7.2 billion USD for Nokia's (NASDAQ: NOK) mobile devices unit, as well as its patent portfolio (all the patents owned by a company.) While Nokia phones already utilize Microsoft's mobile operating system, Microsoft's failure to gain a foothold in the mobile phone market has hurt the company. The company's acquisition of Nokia presents an opportunity to gain a share of this market. About 32,000 Nokia employees, including CEO Stephen Elop, are to be transferred to Microsoft. Mr. Elop is seen as a viable successor to Microsoft CEO Steve Ballmer, who is retiring later this year. After the transaction is completed in early 2014, Nokia will retain its networking and location services sectors. The sale will allow Nokia to ditch its declining smartphone sector, and instead focus on new technologies. Revenue from the sale will augment the company as it evolves into new markets and fields. Investors responded favorably to the sale in Nokia's favor, with the stock surging by $1.18/30.26%. However, Microsoft stocks did not react favorably to the sale. MSFT is currently down by $2.05/6.09 as a result of the sale. Even with Nokia's mobile unit and patents, Microsoft could still have trouble gaining a foothold in the mobile market, and some investors see the sale as a waste of money for Microsoft.
Sources
Yahoo Finance
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