Microsoft will be acquiring Nokia's smartphone hardware and services divisions for $7.2 billion, making it one of Microsoft's biggest acquisitions, second only to Skype. Nokia will continue as a company that is more focused on future technology, and Nokia Here, its mapping software.
This acquisition is largely brought about by Microsoft and Nokia's combined struggles in entering the mobile OS market with Windows Phone. It seems like Microsoft is betting that with tighter integration between hardware and software, they can make more of an impact. However the mobile OS market is challenging to enter, even for a giant like Microsoft. I discuss the dynamics of this particular marketplace in: The Mobile OS Market.
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