Over the long holiday weekend, one story dominated tech news with regard to mobile.
Microsoft confirmed plans to acquire Nokia’s devices and services business for approximately $5 billion.
The Redmond, Washington-based software giant will also spend another $2.18 billion to license Nokia’s patents for a grand total of $7.2 billion in cash.
According to additional details coming to light Tuesday, Microsoft will cull from its overseas cash resources to facilitate the transaction, which may close as early as Q1 2014.
The deal, of course, is still subject to regulatory and shareholder approval.
Some are calling the move an audacious effort to transform Microsoft’s business for a mobile era that has largely passed it by.
On Tuesday morning, Marc Poirier Co-Founder and EVP, Business Development of Acquisio, shared his thoughts with MMW.
“In July, Steve Ballmer announced the ‘One Microsoft’ strategy, a restructuring that would make Microsoft a devices and services company,” Poirier says. “The devices part of the equation is becoming quite clear, Xbox and Windows Phone. Perhaps Nokia can even help with the production of the Microsoft tablets.”
“More control over smartphones opens the door to so many opportunities in mobile advertising,” he adds. “For example, cross-device tracking – i.e. having the ability to recognize a person as they move from their desktop to their tablet to their phone and xbox, log and understand what they do and to leverage this data for advertisers. Eventually, this could be the foundation for some new business models revolving around subsidizing the smartphones in exchange for the right to deliver targeted advertising, including location-based ads.”