News
Microsoft-Nokia Deal Will Close on April 25 with Some Adjusments
- By Gladys Rama
- April 21, 2014
Microsoft's $7.2 billion acquisition of Nokia's devices and services business will be finalized this Friday, the two companies announced.
"Today we are excited to share that we have completed the steps necessary to finalize Microsoft's acquisition of the Nokia Devices and Services business. The transaction will be completed this Friday, April 25, when we'll officially welcome the Nokia Devices and Services business as part of the Microsoft family," wrote Microsoft General Counsel Brad Smith in a blog post Monday.
In its own brief announcement, Nokia said that the deal "is now subject only to certain customary closing conditions."
Announced in September, the deal was initially expected to close sometime in the first quarter of 2014. By late March, however, regulatory approval from some Asian markets -- particularly China -- was still pending, so Microsoft and Nokia adjusted the closing date to sometime in April.
Chinese antitrust regulators eventually approved the deal earlier this month, effectively clearing the way for the deal to close.
Smith indicated in his blog that some of the terms of the deal have changed over the course of the approval process. He highlighted three:
- Microsoft will acquire 21 Nokia employees based in China who work under Nokia's Chief Technology Office. The agreement originally called for the entirety of the Chief Technology Office to remain under Nokia.
- Microsoft will not acquire Nokia's manufacturing plant in Korea as originally planned.
- Microsoft will manage Nokia's social media assets, as well as the Nokia.com domain, for up to one year.
In a leaked letter to Nokia suppliers that has been quoted on several media outlets, Microsoft also indicated that it will change the name of Nokia's devices and services arm from Nokia Oyj to "Microsoft Mobile Oy." The new Microsoft Mobile Oy will be based in Finland, according to reports, and will act as a wholly-owned Microsoft subsidiary.