Microsoft agrees acquisition for Nokia mobile phone business

Microsoft agrees acquisition for Nokia mobile phone business

Technology giant Microsoft has agreed a €5.4 billion (£4.6 billion) deal to buy the mobile phone business at Nokia.

The purchase, which is set to be completed by the early part of 2014, will see a total of 32,000 employees transferring from Nokia to the US company.

The deal will also see the shift of Nokia's licence for its patents and mapping services to Microsoft.

Microsoft is keen to make up for lost ground in the mobile market, with many analysts placing the company behind rivals such as Samsung and Apple, causing many to criticise its lack of pace within the market.

Such a move could strengthen its status among business users, as it is sure to roll out its interface to an increased amount of devices, allowing the firm to enhance its presence within the market.

Microsoft has identified Nokia as the ideal partner to help it expand into an area of business that many claim has been lacking for a while.

The deal comes as a slight relief for Nokia too, as the firm, which was once the world's leader in mobile phones, has now fallen behind a number of rival companies.

It sold 53.7 million mobile phones during the latest quarter, a reduction of 27 per cent on the same period last year.

But there are already signs that the partnership could hold a lot of positives for both companies.

Sales of the latest Lumia handset, which runs a Microsoft operating system, have managed to rise.

Microsoft's unwillingness to act in the face of increased competition to its dominance among small and medium-sized business users, may appear to therefore be a thing of the past.

Yet even the popularity of the Lumia, and even the Surface tablet, have not been able to give Microsoft the boost it needs to turnaround its waning levels of popularity.

Whether this new partnership will rectify that situation remains to be seen.