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RENEE MONTAGNE, HOST: Nokia was once the largest mobile phone manufacturer in the world and the most valuable company in Europe, making it a veritable icon in its home base of Finland. But the rise of Apple and Android smartphones knocked the company on its heels. Now comes news that Microsoft is buying Nokia's mobile phone business for $7.2 billion. NPR's Steve Henn joins us now to explain the details of the deal. Good morning.
STEVE HENN, BYLINE: Good morning.
MONTAGNE: What is Microsoft getting, here?
HENN: Well, it will get Nokia's entire smartphone business, as well as Nokia's large feature phone business. Nokia still sells more than 50 million feature phones a year. Microsoft will also inherit close to 32,000 employees who are based all over the world, including 18,000 who work in manufacturing. You know, and Nokia was one of the oldest and most-storied mobile phone companies on the planet, so Microsoft is paying close to $2.2 billion as part of this deal to license tens of thousands of important mobile phone technology patents. It's also buying a license to use Nokia's mapping service here.
MONTAGNE: So you're describing something here that sounds like a huge deal.
HENN: It is a big deal within the industry, and it's not just a big deal for these two companies. If you're Samsung or HTC and you make smartphones, suddenly, every company out there that makes software for smartphones now owns its own device manufacturer. It's kind of like getting caught standing in a game of musical chairs.
MONTAGNE: You mentioned 32,000 Nokia employees will now be working for Microsoft. I gather one of them will be the now-former CEO of Nokia.
HENN: That's right: Stephen Elop. You know, it was only three years ago that Elop left Microsoft to take the job as CEO of Nokia. And shortly after arriving, he wrote this devastating memo. It's called the - it's known as the burning platform memo, where he
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