The Clinton Herald, Clinton, Iowa

Business & Technology

September 3, 2013

Microsoft to buy Nokia phones, patents for $7.2B

REDMOND, Wash. (AP) — Microsoft is buying Nokia's line-up of smartphones and a portfolio of patents and services in an attempt to mount a more formidable challenge to Apple and Google as more people pursue their lives on mobile devices.

The 5.44 billion euros ($7.2 billion) deal announced late Monday marks a major step in Microsoft's push to transform itself from a software maker focused on making operating systems and applications for desktop and laptop computers into a more versatile and nimble company that delivers services on any kind of Internet-connected gadget.

Microsoft, which is based in Redmond, Wash., is being forced to evolve because people are increasingly pursuing their digital lives on smartphones and tablet computers, causing the demand for PCs to shrivel. The shift is weakening Microsoft, which has dominated the PC software market for the past 30 years, and empowering Apple, the maker of the trend-setting iPhone and iPad, and Google, which gives away the world's most popular mobile operating system, Android.

Nokia, based in Espoo, Finland, and Microsoft have been trying to make inroads in the smartphone market as part of a partnership forged in 2011. Under the alliance, Nokia's Lumia smartphones have run on Microsoft's Windows software, but those devices haven't emerged as a popular alternative to the iPhone or an array of Android-powered devices spearheaded by Samsung Electronics' smartphones and tablets.

Microsoft is betting it will have a better chance of narrowing the gap if it seizes complete control over how the mobile devices work with its Windows software.

"It's a bold step into the future — a win-win for employees, shareholders and consumers of both companies," Microsoft CEO Steve Ballmer said in a statement.

The acquisition is being made at the same time that Microsoft is looking for a new leader. Just 10 days ago, Ballmer, 57, announced he will relinquish the CEO reins within the next year in a move that many analysts regarded as Microsoft's tacit admission that the company needed an infusion of fresh blood to revitalize itself.

Text Only
Business & Technology
  • China McDonald's KFC [Duplicate] China meat scandal hits Starbucks, Burger King BEIJING — A suspect meat scandal in China engulfed Starbucks and Burger King today and spread to Japan where McDonald’s said the Chinese supplier accused of selling expired beef and chicken had provided 20 percent of the meat in its chicken nuggets.C

    July 22, 2014 5 Photos

  • Wal-Mart to cut prices more aggressively in back-to-school push

    Wal-Mart Stores plans to cut prices more aggressively during this year's back-to-school season and will add inventory to its online store as the chain battles retailers for student spending.

    July 21, 2014

  • Hospitals let patients schedule ER visits

    Three times within a week, 34-year-old Michael Granillo went to the emergency room at Northridge Hospital Medical Center in Los Angeles because of intense back pain. Each time, Granillo, who didn't have insurance, stayed for less than an hour before leaving without being seen by a doctor.

    July 21, 2014

  • McDonald's, KFC in China face scandal BEIJING — McDonald’s and KFC in China faced a new food safety scare today after a Shanghai television station reported a supplier sold them expired beef and chicken.The companies said they immediately stopped using meat from the supplier, Husi Food C

    July 21, 2014

  • Your chocolate addiction is only going to get more expensive

    For nearly two years, cocoa prices have been on the rise. Finally, that's affecting the price you pay for a bar of chocolate - and there's reason to believe it's only the beginning.

    July 18, 2014

  • Facebook tests button to let people shop from its website

    Members on desktop computers or mobile devices can click a "buy" button to make purchases through advertisements or other posts on the world's largest social network, the Menlo Park, California-based company said Thursday in a blog post.

    July 18, 2014

  • Microsoft cutting 18,000 jobs, signals new path

    Microsoft announced the biggest layoffs in its history Thursday, saying it will cut 18,000 jobs or 14 percent of its workforce as it streamlines its Nokia mobile device business to focus on using the Windows Phone operating system.

    July 17, 2014

  • web_starbucks-cof_big_ce.jpg Starbucks sees more Apple-like stores after Colombia debut

    This week Starbucks opened its first location in Colombia — a 2,700-square-foot store with a heated patio, concrete columns, mirrors on the ceiling and walls of colorful plants.

    July 17, 2014 1 Photo

  • Rejected Time Warner bid by Fox shows growth mood NEW YORK (AP) — In a move that aims to counter consolidation among TV distributors, Rupert Murdoch’s Fox has made an unsolicited takeover offer for rival media giant Time Warner for about $76 billion in cash and stock.Time Warner rejected the bid, wh

    July 17, 2014

  • What happens to your online accounts when you die?

    You've probably decided who gets the house or that family heirloom up in the attic when you die. But what about your email account and all those photos stored online?

    July 16, 2014

Facebook