Though Nokia was by leaps and bounds Microsoft's best hardware partner for Windows Phone 8, EVP of operating systems Terry Myerson was careful to note that Microsoft's purchase doesn't come with nepotism. Nokia's days as a smartphone brand are over In fact, Microsoft's licensing deal for the Nokia brand doesn't include future Lumias - Nokia as a smartphone brand is effectively dead, as Microsoft takes the lineup in-house. Asha gives Microsoft a far larger footprint for Windows Phone, and access to millions of customers in developing countries that it plans to use as an 'on-ramp to Windows Phone.' The emphasis also lends some credibility to the notion that Nokia's high-end strategy isn't working - analysts predicted a horrific Q3 for the company, and its struggles to find a foothold are well-documented. 'Now is the time to build on this momentum and accelerate our share and profits in phones,' he wrote.Ī driving force behind the sale seems to be Nokia's low-end Asha brand, which Microsoft has acquired outright. Now the two come together, in what outgoing Microsoft CEO Steve Ballmer called 'a bold step into the future.' In an email, Ballmer cited the Lumia 1020 as an example of what the companies could do together, but said the phone hadn't caused the marketshare bump it deserved. The purchase comes on the heels of what appeared to be a failed acquisition in June, at which point it seemed conversations had broken off entirely. (The €5.44-billion total is considerably less than Microsoft paid for Skype in 2011.) 32,000 people are expected to transfer from Nokia to Microsoft, including 18,300 that are 'directly involved in manufacturing.' When the deal closes in the first quarter of 2014, Microsoft will pay €3.79 billion for Nokia's business, plus another €1.65 billion to license its portfolio of patents.

The move unites Windows Phone 8 with its biggest hardware supporter, giving the company the integrated mobile offering it's been looking for with Surface and other devices.

One of the most enticing 'what-ifs' of recent years has come true: Microsoft has purchased Nokia's devices and services unit, bringing the Lumia lineup under the Redmond roof.

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