Nokia Investors Rejoice Following Microsoft's Handset-Division Purchase

Nokia (NYSE: NOK  ) shares have skyrocketed today following the announcement that the company is selling its handset and services business to Microsoft (NASDAQ: MSFT  ) . However, not everyone is happy with this deal -- Microsoft shares have faltered in the wake of this news, down as much as 6%.

The two companies agreed on a purchase price of $7.2 billion, all in cash. In an added twist, former Microsoft exec Stephen Elop -- who was CEO of Nokia, until this news -- will be rejoining Microsoft. Given that current CEO Steve Ballmer will step down in the next 12 months, Elop's arrival has led to much speculation that he will replace Ballmer as the head of Microsoft.

Motley Fool analyst Jason Moser thinks Elop isn't likely to replace Ballmer. Jason believes this agreement is a solid deal for Nokia, but he doubts this will be a positive move for Microsoft, given the company's history of poor acquisitions.

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  • Report this Comment On September 03, 2013, at 5:22 PM, rianjones1983 wrote:

    Nokia Corp To Sell Devices & Services Business To Microsoft (Transcript) @ http://www.earningsimpact.com/Transcript/83403/NOK/Nokia-Cor...

  • Report this Comment On September 03, 2013, at 7:07 PM, cmalek wrote:

    Elop will probably head the new handset and services division of MSFT.

  • Report this Comment On September 04, 2013, at 9:58 PM, jvgfool wrote:

    I believe the hardware manufacturers who use Microsoft OS have let down the Windows platform by not be innovative. Even Apple uses love to run Windows with Parallels, but the hardware manufactures on Windows side of the fence have really let down their part of the deal when it comes to innovation. I believe Microsoft decided to pick up the ball and run with it. I can see Nokia division getting into more than just phones. Think tablets, Xbox, mp3 players, etc.

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