Microsoft Writes Off Nokia Acquisition Erasing $7.6Bn From Its Books

Microsoft which acquired Nokia for $7.2 Bn has written off the Nokia acquisition, erasing $7.6 billion from its books.

The company is also laying off 7,800 employees as part of the writeoff.

Nokia - The Writing is on the Wall
Nokia – The Writing is on the Wall

“Today, we announced a fundamental restructuring of our phone business. As a result, the company will take an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services business in addition to a restructuring charge of approximately $750 million to $850 million.

I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.

In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group. We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software.” [CEO, Satya Nadella in an email to employee]

Question : Will Microsoft ever get mobile?

Leave a Reply

Sign Up for NextBigWhat Newsletter