Why Microsoft Really Bought Nokia

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Last night Microsoft (MSFT) bought the smartphone division of Nokia (NOK) for ~$7 billion.

Nokia will present the deal to its shareholders in November, and both companies expect the transaction to close in the first quarter of 2014.

So, why did Microsoft do this deal?

Two analysts, Ben Thompson of Stratechary and Benedict Evans, assume that Microsoft had to buy Nokia because Nokia was going to stop making Windows Phones very soon. Read more...