2 September 2013 Last updated at 23:33 ET
Microsoft has agreed a deal to buy "substantially all" of Nokia's mobile-phone business for 5.4bn euro ($7.2bn; £4.6bn).
The deal will also see Nokia license its patents to Microsoft.
Nokia, once a global leader in the mobile phone market, has struggled in recent times amid increased competition from rivals such as Samsung and Apple.
The transaction is subject to approval by Nokia shareholders and regulatory approvals.
"We believe this transaction is the best path forward for Nokia and its shareholders," said Risto Siilasmaa, chairman of the Nokia Board of Directors.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23940171#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
