Microsoft to buy Nokia phones unit

Microsoft has agreed a deal to buy Nokia's
mobile-phone business for 5.4bn euro
($7.2bn; £4.6bn).
Nokia will also license its patents and mapping
services to Microsoft.
The companies said in a joint news release that
the deal will be finalised in early 2014, when
about 32,000 Nokia employees will transfer to
Microsoft.
Nokia, once a global leader in the mobile
phone market, has struggled in recent times
amid increased competition from rivals such
as Samsung and Apple.
The transaction is subject to approval by Nokia
shareholders and regulators.
"It's a bold step into the future - a win-win for
employees, shareholders and consumers of
both companies," said Steve Ballmer, chief
executive officer of Microsoft.
'Number one priority'
Microsoft, one of the biggest names in
technology sector, has struggled as consumers
have shunned traditional PC and laptops in
favour of smartphones and tablet PCs.
Critics say the firm has been too slow to
response to the booming market for mobile
devices.
It launched its Surface tablet PCs last year but
sales of the devices have been relatively slow.
Analysts said that the company wanted to make
sure that it got its strategy right in the mobile
phone market.
"Mobile is an area of tremendous potential but
it has been one of weakness for Microsoft,"
Manoj Menon, managing director of consulting
firm Frost & Sullivan told the BBC.
"Clearly the number one priority for the
company is to get its mobile strategy right.
From a strategy point of view, this deal is the
prefect step, The only question is how well
they can execute this plan."