Google's 'Android KitKat'

Google's 'Android KitKat'

Google's next mobile operating system is called Android KitKat and will appear on 50 million Kit Kat wrappers around the globe in the coming weeks, the digital giant and Hershey, the candy brand's parent, revealed today. The companies forged a no-cash, publicity-focused agreement for the co-branding effort, according to multiple reports.

The development surprised many in the tech space, which had expected Google's next mobile OS to be called Key Lime Pie. The Mountain View, Calif.-based company has customarily given Android iterations sweets-minded names, such as Cupcake in 2009.

"We are proud and excited to have one of the world's leading mobile innovators pair up with one of America's favorite chocolate brands," Jennifer Podhajsky, vp of U.S. chocolate for Hershey, said in a statement. "Google's choice to name their next Android platform release Kit Kat brings together two well-known icons from pop culture and technology and gives the classic jingle of 'Gimme a Break' a whole new meaning in the tech world."

In addition, Hershey and Google are offering consumers the chance to win 1,000 Nexus 7 tablets, 150,000 Google Play credits worth $5 apiece and 20,000 coupons for eight-ounce bags of Kit Kat Minis. Starting Friday and running through Jan. 31, 2014, the giveaways will be advertised on Kit Kat packaging.

The co-branding arrangement appears to be the first of its kind in terms of blending software and a consumer-packaged item. And it shouldn't hurt Google's reputation with the sweet-tooth set.

Google's Android already garners 46 percent of the domestic smartphone OS market, besting Apple's iOS (38 percent), per eMarketer.

Lastly, Kit Kat is licensed and sold by Hershey in the U.S., though the candy brand is produced and marketed elsewhere globally by Nestlé.

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MICROSOFT PURCHASES NOKIA FOR $7.2 BILLION

MICROSOFT PURCHASES NOKIA FOR $7.2 BILLION

Microsoft is buying Nokia's devices and services business - and getting access to the company's patents - for a total of $7.2bn in an effort to expand its share of the smartphone market.

The corporations announced the deal late on Monday, saying that Microsoft will pay $5bn for the Nokia unit that makes mobile phones, including its line of Lumia smartphones that run Windows Phone software.

Microsoft is also paying $2.2bn for a 10-year licence to use Nokia's patents, with the option to extend it indefinitely.

"We are very excited about the proposal to bring the best mobile device efforts of Microsoft and Nokia together," Steve Ballmer, Microsoft CEO, said in a memo to employees.

"We are receiving incredible talent, technology and IP [intellectual property]."

Microsoft said it was acquiring Nokia's Asha brand of low to mid-level smartphones and will license the Nokia brand for current Nokia mobile products.

Overseas cash resources

Microsoft, which is based in Redmond, Washington, said it would draw from its overseas cash resources to fund the transaction.

When the deal closes in early 2014, about 32,000 Nokia employees will transfer to Microsoft, the companies said.

Stephen Elop is to step aside as president and CEO of Nokia to become executive vice president of devices and services.

Risto Siilasmaa, Nokia's chairman, will stay in his current role and assume the duties of interim CEO.

Elop is expected to join Microsoft at the close of the transaction, along with several Nokia vice presidents.

Nokia plans to hold a news conference on Tuesday morning in Finland to discuss the deal.