As of today Nokia as a company is no more. It’s been over eight months since the deal was first breed. Microsoft officially takes on the Nokia baggage today. And they will pay €3.79 billion for Nokia’s phone making business, plus another €1.65 billion to license its portfolio of patents. This makes a total of around €5.44 billion (around $7.2 billion). This deal makes Microsoft take control of more than 90 percent of all Windows Phones with Nokia’s Lumia smartphones, and the baggage will also include the low-end Asha brand, Android-based Nokia X handsets, and feature phones. Microsoft overnight will be responsible for shipping more than 200 million handsets a year with an extra 32,000 employees moving across from Nokia.
A MICROSOFT MOBILE WORLD
Microsoft is planning to use the “Microsoft Mobile” cognomen for the Nokia phone business, and says will run it as a separate entity. It’s clear Microsoft needs Nokia’s phone making skills and they really have several tough decisions to make ahead as they merge. Microsoft was expecting to complete this deal bu January but due to regulatory approvals and other issues the deal was delayed for four months. As a result, the original deal had Microsoft acquiring Nokia’s Korean manufacturing facility and an Indian handset plant, but neither will be fully acquired. Although rumor has it that the facilities in Indian may not be part of the deal due to ongoing tax disputes.