Microsoft buys Nokia's mobile business for $ 7.1 billion

Microsoft corporation on Tuesday announced that it will produce Nokia's products and services business for about 3.79 billion Euros or $ 5 billion.

In additional to that, Redmond will shell out more 1.65 billion Euros to license Nokia's patent for a total amount of 5.4 billion euros or about $ 7.2 billion. Microsoft is expected to transfer the cash to close by the first quarter of 2014 .

Steve Ballmer , Microsoft's CEO , said that "This deal step into the future , shareholders, working staff and consumers of both the corporations. Bring the both companies under will improve Microsoft's share and profit in mobile market, and strengths the opportunities for both Microsoft's and the partner's across our family of devices and services. In addition to their innovation and strength in mobile phones at all price factors , Nokia brings capability and talent in critical areas such as hardware engineering and design, supply chain and manufacturing management, and hardware sales marketing and distribution."

Stephne Elop said that " building on our successful partnership, we  now bring out the best of Microsoft's software engineering with the best of Nokia's product engineering , with better designs and economical sales , manufacturing and marketing . And with the combination of talented people, we make this opportunity to improve the present momentum and cutting edge innovation of both mobile phone products and smart devices.

From the past two years the Microsoft corporation is working with Nokia to produce Windows phone in the market. Redmond isn't not just picking the smart phones , it will also cover whole Nokia's mobile phone business, including the budget phones. This deal accelerate the innovation , increased synergies and unified marketing  and manufacturing . when the agreement closes 32,000 employes will transfer to Microsoft , including 4,700 employes in Finland and 18,3000 manufacturing , assembly and packaging staff  of products across the globe.