Microsoft completes acquisition, Nokia becomes Microsoft Mobile

MANILA, Philippines — Microsoft is no longer just a software giant. 

Following a process that took 8 months, Microsoft completed its acquisition of Nokia’s Devices and Services group on Friday, April 25, reinforcing its push to become a major player in the hardware space. 

In a statement, Microsoft CEO Satya Nadella announced the acquisition. “Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation.” 

As previously rumored, Microsoft will use the “Microsoft Mobile” brand name to refer to its new phone business – it will keep the Lumia and Asha brand names. 

Nokia retains control over the Nokia brand name but Microsoft will be allowed to use it on feature phones (possibly including the Nokia X) for the next 10 years.  

The acquisition worth over 5.44 billion euros ($7.53 billion) includes manpower and facilities involved in design, development, manufacturing, marketing and sales. That’s about 25,000 employees based in 130 sites across 50 countries worldwide. 

Microsoft is also paying for a 10-year non-exclusive license on Nokia’s phone patents.

In an amendment to their original agreement, Microsoft also said it will takeover Nokia.com and Nokia’s social media accounts for up to a year. It will not be acquiring Nokia’s manufacturing plants in South Korea and Chennai, India. 

Former Nokia President and CEO Stephen Elop will report directly to Nadella as executive vice president of the Microsoft Devices Group that includes, “Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.”  

The acquisition hopes to breathe new life into struggling Nokia. Once the world’s leading cellphone manufacturer, the Finnish manufacturer stubbled with dismal showing of its Windows Phone-powered Lumia smartphones. Nokia sold only 30 million Lumia smartphones in 2013.  

Will the sale of its phone business Nokia will focus on its network infrastructure business, development of its maps and location-based service HERE, and management of its advanced technologies arm.  — Rappler.com

(US$1 = 0.722957 euros)

YOU MIGHT ALSO LIKE:

• A look back at 16 unforgettable Nokia phones 
• 5 most memorable things we did with our Nokias
• Android Nokia X: A Windows Phone in disguise