Microsoft purchase of Nokia Devices and Services division complete

Microsoft's purchase of Nokia's Devices and Services unit is officially complete, the two companies confirmed early Friday.

In a press release issued on Nokia's website, the company states the transaction was made with the recently announced adjustments, including Nokia's manufacturing plants in Chennai, India, and Masan, South Korea. Despite the minor adjustments, the "material deal terms of the transaction" remain unaffected, the release states. Microsoft is paying Nokia about $7.17 for the unit and the 10-year licensing of the Finnish company's patent portfolio.

As part of the deal, Nokia is prevented from making smartphones until 2016.

Microsoft was less formal about the announcement, releasing a story with the bold title, "Microsoft, Nokia Devices and Services business aim to remake mobile market." The deal means Microsoft will be able to accelerate its growth in the smartphone market, the company says in the story, while also allowing more cohesive development of Windows Phone.

“We have been planning for [increased efficiency], we have been learning about how each other does it, we have been going through and assessing who has the best tools for which part of the business and then how do we put those together so we take the best of both worlds, and now we get to start acting on it,” said Tom Gibbons, the Microsoft corporate vice president who oversaw the transaction.

Stephen Elop, Nokia's former chief executive who will now head up Microsoft's devices unit, called the transaction the start of a "long-term journey" in an open letter published on Nokia's website, saying Microsoft and its newest employees "will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer."

Microsoft has a tough road ahead of it, with about 25,000 new employees to integrate in its business and a significant gap to make up between its operating systems and Google's Android and Apple's iOS. Windows Phone has shown growth, however, with the operating system now accounting for more than 10 percent of devices in the top five European markets.

Image via Microsoft

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trojan_market said,

Actually I would drop Lumia brand as well, maybe surface phone

I reckon maintaining the distinction between Lumia as phones and Surface as tablets would be a good thing. If everything was "Surface", Microsoft would quickly end up in the same mess that Samsung is in with their Galaxy range.

cybersaurusrex said,
It's my understanding that Microsoft can continue to use the Nokia brand on smartphones until the end of 2015

No, Nokia available only for the Asher line. Smartphones, nope

Majesticmerc said,

I reckon maintaining the distinction between Lumia as phones and Surface as tablets would be a good thing. If everything was "Surface", Microsoft would quickly end up in the same mess that Samsung is in with their Galaxy range.


but samsung is extremely successful, infact samsung is kicking apple's ass right now in both tablets and phones and doing it on top of android's mess is a piece of work they have accomplished.

pack34 said,

Why not both? Lumias have been doing really well on the low end and the Surface line is supposed to be high end.


I agree. low end phones with Lumia brand and high end with surface brand or something as elegant as surface. I would buy a surface phone for sure. I know many people would as well. but Lumia phones
(specially low end ones) in front of iphone and galaxy S series is kind of pale. thats fine though because they are meant to target lower budgets.

Well Nokia was able to innovate with their phones where other brands didn't or couldn't. It seems that MS can now take that even further.

JHBrown said,
Got it. I always thought Microsoft was the one running the show regardless of the Nokia name.

Depends on what you mean by running the show. They have been working very close - that's no secret but Nokia has been writing their own apps and extra customizations on top of Windows Phone all along.

Part of me thinks the rebranding of Nokia is a bad idea. Feel free to buy Nokia, but if it were me, I'd keep the branding the same. I say this because several years ago when Lumia's weren't as well known, the only thing people could recognize when they saw my Lumia 800 was 'oh it's a nokia! it must be built pretty well!'. They were clueless of anything else including the OS. The nostalgia people have about Nokia building durable phones seems like a great marketing ploy.

This, most I know that even have a Lumia (including myself) is that Nokia was the company behind it. Not the OS it runs (even though I had faith in MS and WP8.1 returned most of that faith :) )
But the major reason why WP8 was gaining ground and Lumia is somewhat known was because of Nokia.
In the markets Nokia is doing good (EU/Asia), Microsoft will have a hard time gaining the same brand trust.

What will happen to: Nokia apps(Nokia camera, Nokia storyteller, HERE maps, etc...), Nokia Care services, Nokia website services, Nokia official forums?

They've already stripped "Nokia" from many of their apps as they also transfer to Microsoft. The Nokia forums should continue because they aren't discontinued as a company.

nyolc8 said,
What will happen to: Nokia apps(Nokia camera, Nokia storyteller, HERE maps, etc...), Nokia Care services, Nokia website services, Nokia official forums?
Microsoft will run the websites and social resources for a year. I guess the apps will just get de-branded.

Umm... Nokia ruined their brand by themselves hence why they were going downhill.

The Nokia Lumias where it's been selling really well have been known as 'Lumias'... so people will not notice a change unless they drop the name Lumia, which I doubt they will.

j2006 said,
Umm... Nokia ruined their brand by themselves hence why they were going downhill.

The Nokia Lumias where it's been selling really well have been known as 'Lumias'... so people will not notice a change unless they drop the name Lumia, which I doubt they will.


Personally I disagree, the Nokia factor, at least in Europe and Asia, was a determining factor. Said that Lenovo acquisition of IBM laptops proved that these kind of operations are possible; the key is the execution therefore.... time will tell...

Finally, been waiting for what seems like ages for this to be completed. Now on to the new product announcements!

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