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Microsoft Bought Nokia

Microsoft has decided to buy the mobile division and the patents of the Nokia company for $ 5.4 billion, and the Finnish company stands out from a business which he dominated for years.

Agreement between Microsoft and Nokia includes 3.79 billion for the mobile division and another 1.6 billion for patents.

After this transaction, the former leader in the production of mobile phones will be working on and networking services, Nokia Chairman qualified decision, Risto Siilasmaa as ” the best way to go forward, both for Nokia as well as its shareholders ” .

The transaction will be effective early next year, when nearly 32,000 Nokia employees will be transferred to Microsoft.

Some analysts have doubts that this transaction will be profitable for Microsoft. ‘ Both Nokia and Microsoft have missed the boat when it comes to smartphones and it is very difficult to catch up lost. The question is whether the combination of two weak companies will result in a powerful new competitor . I doubt it’ , said analyst Paul Budde

Microsoft has difficulty when consumers migrating from personal computers using the Windows operating system to mobile devices . In turn, Nokia is facing difficulties due to weak demand for its mobile phones amid competition with Apple Inc. branded mobile phones  and manufacturers using Android operating system .

Nokia, one of the pioneers of mobile phones, has been losing ground to rivals Apple and Samsung Electronics after the launch of iPhone in 2007. Two years ago the CEO of Nokia , Stephen Elop , former Microsoft, the Finnish company compared the situation to that of a man working on an oil rig in the North Sea in flames whose options are to remain single platform or to jump into the water and try to save . Under his leadership Elop , Nokia has concluded an alliance with Microsoft and started to use the Windows Phone operating system for its phones , but it did not give the expected results . According to market research firm IDC , only 3 % of smartphones shipped worldwide in the first quarter of this year were equipped with Windows Phone operating system , compared with 75 % with Android .