Microsoft's phone operating system has
been gaining global market share
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.
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