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Steve Ballmer on Microsoft's Nokia Devices & Services buy

PCWorld Staff | Sept. 4, 2013
Microsoft has bought the Devices & Services division of Nokia. Here's what Steve Ballmer had to say about the acquisition


Nokia's Stephen Elop and Microsoft's Steve Ballmer celebrate a Nokia-Microsoft partnership in 2011. Elop is rejoining Microsoft as part of the company's Nokia purchase.

Editor's Note: On the evening of 2 September 2013, Microsoft announced it was buying Nokia's Devices & Services division, giving Redmond an in-house hardware arm for its Windows Phone platform. Here's the letter CEO Steve Ballmer sent to Microsoft employees announcing the move.

We announced some exciting news today: We have entered into an agreement to purchase Nokia's Devices & Services business, which includes their smartphone and mobile phone businesses, their award-winning design team, manufacturing and assembly facilities around the world, and teams devoted to operations, sales, marketing and support.

For Microsoft, this is a bold step into the future and the next big phase of the transformation we announced on July 11.

We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together. Our Windows Phone partnership over the past two and half years has yielded incredible work -- the stunning Lumia 1020 is a great example. Our partnership has also yielded incredible growth. In fact, Nokia Windows Phones are the fastest-growing phones in the smartphone market.

Now is the time to build on this momentum and accelerate our share and profits in phones. Clearly, greater success with phones will strengthen the overall opportunity for us and our partners to deliver on our strategy to create a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.

We have laid out Microsoft's strategic rationale for this transaction in a presentation that I encourage you to read.

This is a smart acquisition for Microsoft, and a good deal for both companies. We are receiving incredible talent, technology and IP. We've all seen the amazing work that Nokia and Microsoft have done together.

Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we expect a smooth transition and great execution.

As is always the case with an acquisition, the first priority is to keep driving through close, which we expect in the first quarter of 2014, following approval by Nokia's shareholders, regulatory approvals, and other closing conditions.

But I also know people will have some questions about what happens post-close. While details aren't final, here is what we know, and how we're generally approaching integration:

Stephen Elop will be coming back to Microsoft, and he will lead an expanded Devices team, which includes all of our current Devices and Studios work and most of the teams coming over from Nokia, reporting to me.

 

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