Microsoft has agreed to buy Nokia's handset unit and license its patents for $7.2 billion, seeking to revive two smartphone businesses that have struggled for half a decade in the hopes to gain share against Apple's iOS and Google's Android devices.
The devices and services unit, which accounted for half of Nokia’s 2012 revenue, along with 32,000 employees, will transfer to Microsoft, the companies said. Nokia Chief Executive Officer Stephen Elop, 49, will return to Microsoft after a three-year stint running the Finnish manufacturer. The move stoked speculation he may be a successor to CEO Steve Ballmer, who said last month he’d retire within 12 months.