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Economy

Microsoft Buys Nokia Mobile Business For $7.2 Billion

THE NEW YORK TIMES, BBC, REUTERS

Worldcrunch

SEATTLE — Microsoft has announced plans to purchase Nokia’s mobile phone business for $7.2 billion, a move by Microsoft to catch up to competitors Samsung and Apple on the mobile business. Nokia shares jumped by 45% on news of the deal.

According to the BBC , the purchase is set to be completed in early 2014 when about 32,000 Nokia employees will then transfer to Microsoft. Nokia, based in Finland, will also license its patents and mapping services to the American company.

The New York Times reported that former Microsoft executive Stephen Elop, who was running Nokia until the deal was signed, will rejoin Microsoft after the transaction closes. He is regarded as a potential successor for Microsoft CEO Steven A. Ballmer, who plans to retire from the company within a year.

In three years under Elop, Nokia saw its market share collapse and its share price shrivel as investors bet heavily that his strategy would fail, according to Reuters .

Microsoft CEO Steven A. Ballmer, set to retire within a year - Photo: Hayne Palmour IV - U-T San Diego/ ZUMA

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FOCUS: Russia-Ukraine War

Putinism Without Putin? USSR 2.0? Clean Slate? How Kremlin Succession Will Play Out

Since Russia's invasion of Ukraine, political commentators have consistently returned to the question of Putin's successor. Russia expert Andreas Umland foreshadows a potentially tumultuous transition, resulting in a new power regime. Whether this is more or less democratic than the current Putinist system, is difficult to predict.

Gathering in Moscow to congratulate Russia's President Vladimir Putin on his birthday.

TASS/ ZUMA
Andreas Umland

-Analysis-

STOCKHOLM — The Kremlin recently hinted that Vladimir Putin may remain as Russia's president until 2030. After the Constitution of the Russian Federation was amended in 2020, he may even extend his rule until 2036.

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However, it seems unlikely that Putin will remain in power for another decade. Too many risks have accumulated recently to count on a long gerontocratic rule for him and his entourage.

The most obvious and immediate risk factor for Putin's rule is the Russian-Ukrainian war. If Russia loses, the legitimacy of Putin and his regime will be threatened and they will likely collapse.

The rapid annexation of Crimea without hostilities in 2014 will ultimately be seen as the apex of his rule. Conversely, a protracted and bloody loss of the peninsula would be its nadir and probable demise.

Additional risk factors for the current Russian regime are related to further external challenges, for example, in the Caucasus. Other potentially dangerous factors for Putin are economic problems and their social consequences, environmental and industrial disasters, and domestic political instability.

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