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Microsoft’s Nokia buyout a done deal: 5 things you need to know

Microsoft’s Nokia buyout a done deal: 5 things you need to know

It was way back in September that Microsoft announced it was buying Nokia’s mobile division. But the deal will finally be complete this week.

On Monday, Microsoft published a blog post announcing it had completed the final steps necessary to complete the acquisition.

So what does it mean for the mobile world? Here’s everything you need to know.

1 It’ll be done and dusted this Friday

nokia lumia 630

That’s right, this is a big week for both companies.

Brad Smith, general counsel and executive vice president of Microsoft’s legal and corporate affairs, wrote in the blog post: “The transaction will be completed this Friday, April 25th, when we’ll officially welcome the Nokia Devices and Services business as part of the Microsoft family.”

2 It’s changed a bit

contract handshake

The deal has been tweaked a little from the original proposal.

Microsoft will now manage the domain and social media sites for up to a year. Nokia’s 21 employees in China will join Microsoft too.

But the Redmond-based company won’t acquire Nokia’s Korean manufacturing plant, which was originally part of the deal when it was first mooted.

3 It was delayed due to worldwide legal wranglings

court building generic

So why the delay? Obviously a global transaction of this size involves a lot of legal toing and froing with governments all over the world.

Some, like the US and Europe, were quick to okay the deal.

China, however, held everything up due to concerns over patent policy.

Workers in the Nokia plant in Dongguan originally protested against the deal, claiming it would affect their compensation.

Nokia also faced tax a dispute in India, though thankfully these issues have now been resolved.

4 Nokia will be renamed

microsoft logo new

The new name was revealed in a leaked letter from Nokia to its existing Devices and Services business suppliers.

Nokia Oyj – the official name for Nokia – will be renamed Microsoft Mobile Oy.

Microsoft hasn’t said whether its phones will be branded as Nokias.

Under the terms of the deal it can use the Nokia brand name for 10 years, as well as the Lumia and Asha names.

Nokia has a rich heritage in the mobile world, and devices like the Lumia 925 and Lumia 1020 have had some of the best cameras of recent years.

It would be an odd move not to capitalise on the clout the Nokia name brings.

5 And its non-phone business will continue

nokia tablet

While Nokia may have sold its phone division, it’s business as usual for the rest of the company.

Nokia isn’t prohibited from making communication devices, so we could even see it release something with call-making skills but in a new form factor.

Around the time the deal was announced, Nokia’s executive vice president Michael Halbherr told The Register: “We have sold our device business for a reason, but that doesn’t keep us out of the device business… We will concept and think about new forms of devices.”

Halbherr added: “It would be wrong to think about this from a phone perspective. With the cloud and the internet of things, we’re seeing a convergence of form factors where you do a few things in a totally seamless way.

“We will still surprise people with leading-edge hardware.”

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