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THE NEWS WRAP: Microsoft buys Nokia mobile phone business for $US7.2 billion
Microsoft has announced a $US7.2 billion takeover of Nokia’s devices and services businesses, with the software giant also acquiring a licence to its patents.
Under the deal, Microsoft will pay around $US5 billion for the Finnish telecoms giant’s smartphone and featurephone businesses, along with a further $US2.2 billion for a 10 year licence to the company’s patents and other key intellectual properties.
The announcement sees Nokia chief executive Stephen Elop return to Microsoft, where he is widely tipped to replace outgoing chief executive Steve Ballmer.
Microsoft’s market capitalisation fell by 6%, or $US16.6 billion, following the announcement.
Apple to announce new products on September 10
Apple has officially sent out invitations to the media for an event on September 10.
The company is expected to release a new version of the iPhone, dubbed the iPhone 5S, alongside a low-cost version known as the iPhone 5C.
Meanwhile, key rival Samsung has confirmed it is planning to announce some new devices of its own ahead of the event, including a smartwatch known as the Galaxy Gear, an updated Galaxy Note tablet and a “smart home” solution.
LinkedIn to issue $US1 billion in common stock
Social media giant LinkedIn is set to issue an additional $US1 billion in common stock, with the funds set to be used for product development and acquisitions.
“We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business, although we have no present commitments or agreements to enter into any acquisitions or investments," LinkedIn said.
The Dow Jones Industrial Average is up 14833.96. The Aussie dollar is down to US90.6 cents.