Tuesday, Apr 16, 2024 | Last Update : 12:50 PM IST
Microsoft and Nokia join hands again after USD 7 billion Lumia failure
Microsoft acquired Nokia smartphones in 2014, hoping to push the Windows Phone series, only to sell the company to HMD two years later.
US-based Microsoft and Finland based Nokia are teaming up again after the ill-fated Lumia deal from five years ago. The new deal will utilise Microsoft’s expertise in cloud computing and artificial intelligence with Nokia’s 5G private networking expertise. The companies’ new deal will work on creating new connectivity and automation solutions.
“We’re excited about the opportunities this will create for our joint customers across industries,” said Jason Sander, Microsoft Azure Executive Vice President in a statement.
Microsoft acquired Nokia smartphones in 2014, hoping to push the Windows Phone series. The deal was an early challenge to work on for newly appointed CEO Satya Nadella. Nadella had to deal with the failure of the deal, which had been first announced during Steve Ballmer’s reign over the company. Microsoft then retreated from the deal, which cost the company USD 7.6 billion and thousands of jobs.
In 2016, Nokia was sold to HMD Global for USD 350 million. HMD now holds the sole rights to sell smartphones with the 'Nokia' branding. Nokia is now primarily focussing on equipment and various services for communication enterprises. In 2018 the company formed a USD 3.5 million partnership to develop a new generation of wireless technology along with T-Mobile.
