Mobile phone pioneer Nokia on Tuesday announced the sale of its sinking handset
business to software giant Microsoft, that is fighting to catch up with rivals Apple and Google in the smartphone market.
Nokia, the world’s leading mobile phone maker until last year, will now focus on network infrastructure and mapping services, which it called “the best path forward for Nokia and its shareholders”.
The $7.17 billion sale was cheered by Nokia investors, pushing the Finnish company’s share up over 40 per cent, but Microsoft shares fell 4.5 per cent in early trading to $31.90.
Microsoft CEO Steve Ballmer said the Nokia acquisition — the second-biggest in its history after Skype — was a “signature event in our transformation” and one that “will accelerate our success in smartphones”.
Nokia pioneered the mobile phone and dominated the market for 14 years, until overtaken by Samsung in 2012 as the top-selling brand.