Microsoft has agreed a deal to buy Nokias mobile phone business for 5.4bn euros ($7.2bn or £4.6bn).
Nokia will also license its patents and mapping services to Microsoft. Nokia shares jumped 45% on news of the deal.
The purchase is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft.
While Nokia has struggled against competition from Samsung and Apple, Microsoft has been criticised for being slow into the mobile market.
Read more at BBC News