(The Hosting News) – Perhaps in a bid to beef up its struggling Windows Phone 8 offering, Microsoft on Tuesday announced its intention to acquire Nokia’s mobile devices and services business.
The acquisition comes with a reported EUR 3.79 billion price tag.
Nokia is known for using Microsoft’s mobile OS on its popular Lumia smartphone devices.
In a press release, departing Microsoft CEO Steve Ballmer called the move a “bold step into the future.”
“In addition to their innovation and strength in phones at all price points, Nokia brings proven capability and talent in critical areas such as hardware design and engineering, supply chain and manufacturing management, and hardware sales, marketing and distribution,” Ballmer commented.
Microsoft in the recent past has looked to push its Windows Phone 8 devices in a market still dominated by the likes of Apple and Google’s Android system.
“While the sale of Nokia to Microsoft for $7.1 billion will help standardize the two companies’ software and hardware for smartphones, it could also give Microsoft an edge in recruiting customers who still buy the more basic feature phones from companies like Nokia,” noted New York Times writer Nick Bilton in an article on the publication’s Bits blog.
Shares in Nokia increased by 47% upon news of the deal, according to a report from Tech Crunch.