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Microsoft-Nokia Deal Closing Friday With Changes

By Ben Munson | April 21, 2014

Microsoft today announced its acquisition of Nokia’s devices and services business will close Friday, with some changes to the original deal.

Detailed in a blog post, the alterations affect Nokia’s web and social media presence, exchange of property, and additional employees moving from Nokia to Microsoft.

Microsoft said the original deal did not address Nokia’s online assets but in the new deal, Microsoft has agreed to “manage” both Nokia.com and the OEM’s social media.

As part of the revised deal, Microsoft will no longer be assuming ownership of Nokia’s Korean manufacturing facility. Nokia’s operation in Masan, South Korea, established in 1984, is the longest running facility the company has listed. But Nokia built and opened a new facility there in 2012.

In terms of workforce, Nokia was to retain its entire workforce under the conditions of the original deal but now 21 Nokia employees in China working on mobile phones will join Microsoft.

In November 2013 Microsoft agreed to buy Nokia’s handset business—along with some patents, licenses and Nokia’s mapping operation—for $7.2 billion. Shareholders overwhelmingly supported the deal but approval was held up by Chinese regulators who put in place pricing conditions around the use of Nokia’s patent portfolio.


Filed Under: Devices

 

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