You read the headlines correctly. Microsoft has announced today that they are going to buy the mobile phone portion of Nokia’s company for $7.2 billion US (£4.6 billion). As part of the deal, Nokia will also be licensing its mapping service (known as Here) and patents.
Personally, I think that Microsoft have done this because they needed to build an ecosystem. Android and iOS already have a strong grip on the mobile phone market with their ecosystems. By buying out Nokia’s mobile phone arm and their mapping services, they are trying to put together the last piece of their ecosystem and try and get back. With that being said, I fear that it might be a case of “too little too late” for Microsoft. This is because they were slow to get into the mobile phone space, and take advantage of the growing demand for smartphones and decline of PCs.