Microsoft buying Nokia's phone business in a $7.17 billion bid

Ballmer (left) and Elop (Right)

Just days after Steve Ballmer declaring his retirement, Steve has given the go ahead for Microsoft to purchase Nokia’s devices and services business along with licenses to Nokia’s patents for about $7.17; £4.6 billion in cash. Microsoft announced the deal late Monday night.

A former Microsoft executive, Elop has been mentioned as possible successor to Ballmer next year. Risto Siilasmaa, the chairman of Nokia, has stepped in as interim CEO of Nokia, which will continue to sell networking gear, mapping technology, and intellectual property. “For Nokia, this is an important moment of reinvention and from a position of financial strength, we can build our next chapter,” says Siilasmaa.

The purchase is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft including 4,700 folks from Finland.

According to a statement, the businesses Microsoft has bought accounted for $19.7 billion in revenue last year, or about half of Nokia’s total sales.

Microsoft gets the Lumia brand for its devices and will license the Nokia brand from Nokia, which gets to keep its brand.