It's the outcome many were predicting all along, yet the timing comes as a major shock: Microsoft is buying out Nokia's devices and services division in a deal worth £4.6bn.
Nokia boss Stephen Elop is stepping down but will be reincorporated into Microsoft as the deal progresses. But the simple truth is: Nokia and smartphones are finished.
Rumours that Microsoft wanted to buy out Nokia for a leg-up into the smartphone hardware business first surfaced with the ink still drying on the two companies' strategic partnership signed back in February 2011.
Nokia's new CEO Elop, after all, was an ex-Microsoft man, and the decision to drop MeeGo and Symbian and align with Windows Phone was claimed by many to be a Trojan Horse-like move to get an insider past the gates and working to undermine Nokia from the inside.
And while there's no sensible evidence to suggest such a scheme ever existed, it doesn't matter, since the worst fears of those who disagreed with the move to team up with Microsoft have now been realised.
The specifics of the deal see Microsoft paying £3.2bn for Nokia's phone business, and another £1.4bn for a 10-year licence on its patents. Elop is stepping down to assume a new role as executive vice president of devices and services (reporting to new interim CEO Risto Siilasmaa) during the transition.
Once the deal is done, which should be early next year, Elop will take up the role of head of Microsoft's devices team. He'll report directly to outgoing Microsoft CEO Steve Ballmer, and will surely be on the inside track to replace Ballmer when he steps down next year.
Microsoft will take over the Lumia and Asha brands, but Nokia will continue as a company on its own, keeping control of Nokia Siemens Network, the HERE mapping platform (which Microsoft has already agreed to lease for four years), and the Advanced Technologies division which focuses on licensing and development.
Microsoft and Nokia were reportedly talking about a potential buyout just a few months ago, but after those discussions were seen to fall apart, today's developments comes as quite a turnaround.
In the short term, there isn't likely to be much difference in terms of new devices Nokia had planned: they will appear just as before.
But start paying attention to that Nokia badge above the screen, because it won't be there for much longer.