Microsoft and Nokia deal has been in the works for some time
The deal between Microsoft and Nokia hasn't simply come about in a matter of hours. According to the leaders of both companies, talks have been underway for some time, which included dozens of meetings. It's reported over on AllThingsD that Nokia's own board and committees alone had more than 50 meetings regarding the purchase.
The then Nokia chairman, Risto Siilasmaa and Microsoft CEO Steve Ballmer spoke about the potential deal at a meeting back in February at Mobile World Congress in Barcelona. Already sporting a tight relationship which was formed back in 2011, talks eventually shifted to calculating whether or not a merge (or purchase) would make sense.
Now Nokia CEO Risto Siilasmaa told AllThingsDigital, "We have worked very hard on both sides–and together in finding out the way to do a transaction." Microsoft CEO Steve Ballmer explains how both partners had multiple plans and aimed to reach a middle ground that suited the partnership.
Ballmer continued to explain, "We looked at many, many possibilities together and ultimately took this one with us buying all of Nokia’s phone business, becoming an innovation partner and customer of Here and licensing patents from Nokia." This makes more sense, providing Microsoft with the means to focus on creating first-party Windows Phones, while remaining a customer to Nokia for HERE services and more.
Microsoft will also retain the ability to further innovate on top of Nokia's HERE mapping system. The major part in this purchase is the continued push towards Microsoft becoming a devices and services company. CEO Steve Ballmer has been pushing for the company to move into a new age and this deal helps out by:
- Accelerating share and profits in phones
- Creating first rate Windows Phone experience for its users
- Preventing Google and Apple from foreclosing app innovation, integration, distribution and economics
- Preparing for the financial opportunity that will be fuelled by a growing smartphone market
What's next on the horizon for Nokia and Microsoft? That's yet to be seen.
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Rich Edmonds was formerly a Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him on Twitter at @RichEdmonds.