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Microsoft agrees to buy Nokia's mobile phone business

3 September 2013 Last updated at 18:50 BST

Microsoft has agreed a deal to buy Nokia's mobile phone business for 5.4bn euros ($7.2bn; £4.6bn).

Nokia will also license its patents and mapping services to Microsoft. Nokia shares jumped 35% on the news, whereas Microsoft's fell more than 5%.

The purchase is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft.

Rory Cellan-Jones reports.