Nokia Oyj, the company’s public name, will soon be Microsoft Mobile Oy. Microsoft’s $7.2 billion acquisition of Nokia’s Devices and Services division, including its manufacturing, design and engineering facilities, will close this Friday, April 25th.
Brad Smith, Microsoft’s General Counsel, wrote in a blog post today,“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.” He also notes that elements of the original deal have changed:
“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. We’ve entered into numerous agreements to address items ranging from manufacturing to IT.”
The specific changes are as follows:
· 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.
Microsoft is on the verge of releasing Windows Phone 8.1, and has changed the licensing terms for OEMs, making the software available for free for devices under 9-inches in screen size. Microsoft will retain many Nokia employees, with the division will still being run by former Nokia CEO, Stephen Elop.
Nokia will continue to invest in its core non-mobile products, including HERE, its mapping solution, and NSN, Nokia’s networking division.