Nokia said Friday it has completed the 5.44 billion-euro ($7.5 billion)
sale of its troubled cellphone and services division to Microsoft Corp.,
ending a chapter in the former world leading cellphone maker's history
that began with paper making in 1865.
The closure of the deal, which
includes a license to a portfolio of Nokia patents to Microsoft Corp.,
follows delays in global regulatory approvals, and ends the production
of mobile phones by the Finnish company, which had led the field for
more than a decade, peaking with a 40-percent global market share in
2008.
(Also see: Nokia's phone business to be renamed Microsoft Mobile, but the 'brand' will live on)
Nokia said the total transaction price would be "slightly
higher" than when it was originally announced on September 3, 2013 because of
adjustments made for net working capital and cash earnings. The deal was
to have closed during the first quarter but was held up because of
delays in regulatory approvals worldwide.
The company will now
focus on networks, mapping services and technology development and
licenses, and said it will give more details of the deal and future
plans when it releases first-quarter earnings on April 29 - the last
report to include the ailing devices and services division.
(Also see: Nokia protests 'absurd' EUR 300 million Indian sales tax claim)
"The
new Nokia can now go forward and concentrate on its remaining assets,"
said Neil Mawston from Strategy Analytics, near London. "It has one of
the best IPR (intellectual property rights) assets in the entire
industry and it has good mapping services."
Nokia said two plants
will remain outside the deal - a manufacturing unit in Chennai, India,
subject to an asset freeze by Indian tax authorities, and the Masan
plant in South Korea, which it plans to shut down. The adjustments have
no impact on the deal and Nokia "will be materially compensated for any
retained liabilities," the company said.
(Also see: Nokia forcing us to take VRS, allege Chennai factory employees)
Microsoft said it will
acquire some 25,000 Nokia employees in 50 countries. More than 4,000 in
Finland will transfer to Microsoft and the Nokia headquarters in Espoo,
near the Finnish capital, Helsinki, will be taken over by the U.S.
giant.
Former Nokia CEO Stephen Elop will serve as executive vice
president of the Microsoft Devices Unit, which will include Nokia's
former Lumia smartphones and tablets, Microsoft said.
Nokia Corp.'s share price was up more than 1.5 percent at 5.37 euros in afternoon trading in Helsinki.
Athena Lunar Lander Successfully Lands Near Moon’s South Pole on IM-2 Mission7 March 2025
Search
![Gadgets 360 With Technical Guruji: Ask TG [ March 22, 2025]](https://c.ndtvimg.com/2024-12/5s52e4k_-ask-tg_640x480_14_December_24.jpg?downsize=180:*)
