A $7.2 billion dollar deal between Microsoft and Nokia will finally close on April 25th. Rumors spreading about renaming the firm as Microsoft Mobile.
After months of speculations, finally Microsoft (NASDAQ:MSFT) will complete the acquisition of Nokia’s Devices and Service on this Friday, April 25th, 2014.
In a blog post, General Counsel and Executive Vice President, Brad Smith wrote, “Today we are excited to share that we have completed the steps necessary to finalize Microsoft’s acquisition of the Nokia Devices and Services business. The transaction will be completed this Friday, April 25, when we’ll officially welcome the Nokia Devices and Services business as part of the Microsoft family.”
The deal was originally declared on September 3, 2013 and expected to be closed in Q1 2014, but didn’t happen due to Asian regulatory issues. However, after the green signal, the transaction is now subject only to certain customary closing conditions.
Microsoft acquired Nokia Devices and Service business, patents and mapping service for 5.4 billion euros in cash. In which, 3.79 billion euros will be paid to the production assets and 1.65 billion euros for the entire patent portfolio.
Microsoft sees the bright future of Windows Phone with the closure of this deal as Brad Smith mentioned, “The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration. This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones.”
After numerous agreements for handling issues related to manufacturing or IT, finally deal went off smoothly.
Some of the Agreements are:
- While the original deal did not address the management of online assets, our two companies have agreed that Microsoft will manage the nokia.com domain and social media sites for the benefit of both companies and our customers for up to a year.
- The original deal had all employees in Nokia’s Chief Technology Office continuing with Nokia. We’ve adjusted the agreement, so the 21 employees in China working on mobile phones will join Microsoft and continue their work.
- The original deal had Microsoft acquiring Nokia’s Korean manufacturing facility. The agreement was adjusted and Microsoft will not acquire the facility.
Nokia Phone or Microsoft Phone?
Rumors are spreading over the internet about the firm renaming. The nokiapoweruser.com has reported the few tidbits about renaming Nokia to Microsoft Mobile. The information came from a leaked email, which was sent to suppliers. The email states, “Please note that, upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices”.
In the future, we might see some great innovations because of Microsoft-Nokia merger.