Microsoft's acquisition of Nokia's Devices & Services business is a necessary gamble for the software company's future growth in mobile, and for Nokia an admission that it doesn't have enough resources to successfully compete with Samsung and Apple, according to analysts.
Microsoft announced on Tuesday it will pay €3.79 billion (US$5 billion) for "substantially all" of the Nokia's Devices & Services business and €1.65 billion to license Nokia's patents at the close of the transaction.
The deal is a momentous one for both companies, and the end of an era for Nokia, which will now focus on mobile networking equipment and mapping and location services.
"With mobile now firmly positioned as the world's fastest-growing and largest computing platform we see this move as a bold but entirely necessary gamble by Microsoft," wrote Ben Wood, chief of research at CCS Insight, in a research note.
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