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Microsoft acquires Nokia Oyj for $7.2bn

Microsoft Corp has agreed to buy Nokia Oyj's handset business and licence its patents for €5.44bn ($7.2bn), Bloomberg has reported. The deal means Nokia is exiting from the mobile-phone business it once dominated, while Microsoft will be moving into hardware. "Both Nokia and Microsoft really missed the boat in terms of smartphones, and it is extremely difficult to claw your way back from that," said Paul Budde, a Sydney-based telecoms consultant. "The question is whether combining two weak companies will get you a strong new competitor. It's doubtful."