Microsoft To Buy Nokia Phone 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.
While Nokia has struggled with competition from
Samsung and Apple, Microsoft has been criticised
for being slow into the mobile market.
"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.
The transaction is subject to approval by Nokia
shareholders and regulators.
'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 respond
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."
'Tighter integration'
Nokia was one a leader in mobile phone category
but the firm's sales fell 24% in the three months to
the end of June, from a year earlier.
It sold 53.7 million mobile phones during the
quarter, down 27% on last year.
However, sales of its new Lumia phones, which run
a Microsoft operating system, rose during the
period.
Mr Menon said that the deal between the two
companies will help bring the "hardware closer to
the operating system and achieve a tighter
integration".
"This should help Microsoft make a more affective
strategy to compete in the mobile sphere," he said