Microsoft in $7 Billion Deal for Nokia Cellphone Business

Microsoft struck a $7 billion deal to acquire Nokia’s core cellphone business, a bold move to try to catch up in a fast-growing mobile business that is now dominated by Samsung and Apple.

The deal comes on the heels of announcing the planned retirement of Microsoft Chief Executive Steve Ballmer. As part of the deal for the devices-and-services business, Microsoft will bring aboard several executives who could be contenders for Ballmer's job. Microsoft will pay €3.79 billion to buy "substantially all" of the Nokia business, which includes its smartphone operations. Microsoft will also pay €1.65 billion to license Nokia's patents, the companies said, bringing the deal to €5.44 billion, or $7.18 billion. Stephen Elop, Nokia's CEO, and several other executives are joining Microsoft as part of the deal. Elop, a former Microsoft executive, is among the names being circulated as Ballmer's successor. Microsoft recently announced that Ballmer will retire from his post within a year, or when the next CEO is chosen.