Microsoft would buy Nokia's mobile phone business for $7.2 billion (Re. 46900 Crore) and its CEO Stephen Elop would join Microsoft when the deal closes. Microsoft will purchase all of Nokia's Devices & Services business, licenses, Nokia's patents, and the rights to use Nokia's mapping services. Elop, along with senior executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, would transfer to Microsoft when the deal concludes. Nokia, once the leader in mobile phones, has been struggling to deal with challenge from smartphone makers like Apple and Samsung.
The deal is to close in the first quarter of 2014 and is subject to approval by shareholders and regulators. Earlier, Nokia had partnered in 2011 with Microsoft and it uses Microsoft's Windows software to run its mobile phones.
"It's a bold step into the future - a win-win for employees, shareholders and consumers of both companies," Microsoft's outgoing CEO, Steve Ballmer, said in a statement. "Bringing these great teams together will accelerate Microsoft's share and profits in phones, and strengthen the overall opportunities.