Nokia To Be Renamed 'Microsoft Mobile' Following Microsoft's Acquisition
Get ready to bid adieu to hearing the name Nokia and smartphone in the same breath. If a leaked email from Microsoft is to be believed then the handset division of Nokia will be renamed Microsoft Mobile once Microsoft’s Nokia takeover is complete.
By Sadho Ram — 03 Sep 2013, 11:49 AM — Updated over 10 years ago
Microsoft Plans To Complete Nokia Acquisition On 25 April 2014
Microsoft is scheduled to conclude its acquisition of Nokia’s mobile handset unit at the end of this week, the company said. “Today we are excited to share that we have completed the steps necessary to finalise Microsoft’s acquisition of the Nokia Devices and Services business,” announced Microsoft’s Brad Smith, general counsel and executive vice president of the software giant’s Legal and Corporate Affairs department in a 21 April statement. Microsoft first announced that it was acquiring Nokia’s smartphone manufacturing operations on 2 September, 2013.
firstpost.com
“The transaction will be completed this Friday, 25 April, when we’ll officially welcome the Nokia Devices and Services business as part of the Microsoft family,” added Smith. Nokia is Microsoft’s premier Windows Phone producer. In a bid to catch up to Apple and Google in the hotly contested smartphone market, the companies formed an alliance in 2011. As part of the partnership, Nokia replaced the Symbian smartphone operating system with Microsoft’s mobile Windows Phone OS.
Addressing the massive deal, funded by Microsoft’s overseas holdings, then-chief executive Steve Ballmer described the transaction in an email to staffers as “a smart acquisition for Microsoft, and a good deal for both companies”. The acquisition, originally expected to close during the first quarter of this year, hit some speed bumps. “As with any multinational agreement of this size, scale and complexity, our two companies have made adjustments to the original deal throughout the close preparation process,” revealed Smith. The alterations, he explained, entailed “numerous agreements to address items ranging from manufacturing to IT”.
Also, the Finish mobile brand Nokia Oyj will be dropping its iconic name this month in light of Microsoft’s acquisition of the company set to conclude in coming weeks. A leaked letter acquired by Nokiapoweruser which was sent to Nokia’s suppliers said that the mobile brand will now have a new name: Microsoft Mobile Oy.
nokiapoweruser.com
The deal doesn’t really mean the end of Nokia but it marks its consolidation with Microsoft as the companies, both former leaders of their respected industries, join forces to reclaim their titles from the likes of Samsung and Apple.
marketing-interactive.com
Microsoft will purchase Nokia's Devices & Services business, license Nokia's patents and more
Microsoft announced late Monday that it is buying the majority of Nokia’s cell phone unit for 3.79 billion Euros ($5.0 billion) and spending another 1.65 billion Euros ($2.18 billion) to license Nokia’s patent portfolio for a total of 5.44 billion euros ($7.17 billion).
ndtv.com
Under the terms of the agreement, Microsoft will take over all of Nokia’s devices and services business, including the mobile phones and smart devices business units.
Microsoft will acquire the Asha brand and will license the Nokia brand for use with current Nokia mobile phone products. Nokia will continue to own and manage the Nokia brand.
ndtv.com
Once the deal is done, a number of Nokia executives will join Microsoft including Stephen Elop, a former Microsoft executive seen as among the top contenders to replace CEO Steve Ballmer.
Microsoft will draw upon its overseas cash resources to fund the transaction. The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia's shareholders, regulatory approvals and other closing conditions.
cnet.com.au
Nokia will retain its patent portfolio and will grant Microsoft a 10-year non-exclusive license to its patents at the time of the closing. Microsoft will grant Nokia reciprocal rights to use Microsoft patents in its HERE services.
About 32,000 staff are expected to transfer to Microsoft
About 32,000 staff are expected to transfer to Microsoft, including 4700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide, the companies said.
Mr Elop has cut more than 20,000 jobs and suspended the company’s dividend in January in an attempt to improve its finances.
The operations that are planned to be transferred to Microsoft generated an estimated 14.9 billion euros, or almost 50 per cent of Nokia’s net sales for the full year 2012.
cnet.com
Chairman Risto Siilasmaa will become interim CEO of Nokia
‘‘After a thorough assessment of how to maximise shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders,’’ chairman Risto Siilasmaa said in a statement.
Additionally, the deal offers future opportunities for many Nokia employees as part of a company with the strategy, financial resources and determination to succeed in the mobile space."
ndtv.com
Other related stories on SAYS
Nokia’s focus at the upcoming MWC 2013 in Barcelona is to be upon a range of cheaper Lumia smartphones, according to news reports.
says.com