||09-03-2013 09:00 AM
What Microsoft Did And Didn't Buy With Its Nokia Acquisition
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Nokia will exist while Microsoft gets the manufacturing, distribution, marketing and sales of Nokia's smart and feature phones.
In one fell swoop today, Microsoft is becoming an extremely different type of company. Microsoft is pushing hard to recreate itself as a “devices and services” company and today it took a very big step in that direction by buying, you guessed it, Nokia’s mobile devices and services division.
Microsoft is paying $7.17 billion to bring Nokia into the fold, including the design, manufacturing and distribution of both smart and feature phones and the right to license many of Nokia’s patents, as well as the Nokia name and a host of mobile services.
See also Microsoft Does Inevitable, Buys Nokia Smartphone Unit, Patents for $7.2 Billion
What didn’t Microsoft buy with its $7 billion in cash? Nokia itself, including most of Nokia’s non-smartphone related property (cellular infrastructure and HERE Maps, for example). Many people will say, “Microsoft bought Nokia.” This is true because Microsoft did buy a good portion of the Finland manufacturing company, but Nokia itself will still exist independent of Microsoft.
So, what exactly is Microsoft getting? Let’s break it down.