Microsoft plans to add more services to Nokia phones right away, and is targeting growth in feature phones in emerging markets.

Sarah Thomas, Director, Women in Comms

April 25, 2014

2 Min Read
Microsoft Officially Closes Nokia Buy

Nokia's devices division is now officially part of Microsoft, wrapping up a deal first announced last September and giving Microsoft its own device business for its Windows Phone operating system.

Microsoft Corp. (Nasdaq: MSFT) confirmed it has completed its more than $7 billion acquisition of the Finnish smartphone maker on Friday, enabling it to "accelerate its share of smartphones and feature phones in developed and emerging markets, and increase its role as a devices and services company." (See Nokia Sale to Microsoft Expected to Close This Week, Euronews: Nokia Handsets Sale Delayed and Nokia: It's Really Happening.)

Nokia said in a release that the total transaction price is expected to be slightly higher than the previously announced €5.44 billion ($7.52 billion) after final adjustments have been made.

The two companies first became partners early in 2011. Even though Microsoft has licensing deals in place with others such as Samsung Corp. and High Tech Computer Corp. (HTC) (Taiwan: 2498) -- deals it hopes to continue -- Nokia already accounts for 90% of the Windows Phone devices on the market.

In addition to its phone business, the software giant is acquiring Nokia's design team, most of its manufacturing and assembly facilities and operations (minus manufacturing plants in India and South Korea now excluded from the deal), and sales and marketing support. It will also license its patents.

According to Tom Gibbons, the Microsoft corporate vice president who is responsible for the Nokia integration, the combined company already has a joint operating plan established and Nokia feature phones will start to have more Microsoft services on them right away. It is targeting growth in emerging markets where Android dominates.

Microsoft didn't delve into other specific plans for Nokia, but a leaked letter suggests it will be leaving behind the once iconic Nokia name in favor of "Microsoft Mobile."

Nokia is also expected to announce Rajeev Suri as CEO of what's left of the company, including the NSN infrastructure unit, location services business, and its patents, when it shares its first-quarter earnings on Tuesday.

— Sarah Reedy, Senior Editor, Light Reading

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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