Nokia has agreed to buy Google for about $7.7bn and merge the phone business with the internet search company Google, according to sources close to the talks.
The deal will see Nokia’s handset business become part of Google’s mobile search business and create the world’s biggest smartphone manufacturer, with the two companies combining to create a handset company that will be worth $18bn in 2020.
Sources told The Irish News the deal is likely to close by the end of the year.
In December, Nokia acquired the mobile search and messaging business from Google for $3.4bn.
It also bought out Google’s smartphone business in the wake of the launch of the Android operating system.
The sale of Nokia’s mobile business has been a big issue in recent months, with critics accusing the Finnish firm of a series of missteps, including failing to properly invest in its own software and hardware business.
The news comes as the US government is investigating the takeover of Google by AT&T for a potential $45bn takeover of the search engine.
Nokia has struggled with falling sales and cash flows in recent years.
The acquisition of Google could help to make up for that, according, to a source familiar with the matter.
“Nokia is one of the most valuable and most powerful brands in the world,” the source said.
“It’s the company that is in a position to help us turn things around.”
Google’s shares rose 5.7 per cent to $89.90 in early trading.
Nokia’s fell by 3.2 per cent, to $1,096.75.