It's Official: Microsoft Now Owns Nokia's Mobile Business

By Rory Lidstone April 25, 2014

Those who have been following Microsoft’s acquisition of Nokia’s mobile operations closely should remember that the deal’s closing has been delayed somewhat. Indeed, news broke last month that the acquisition, expected to close during the first quarter, wasn’t going to do so until April. Well, it’s April and so it shouldn’t be surprising that Nokia’s mobile business is now officially Microsoft’s.

The acquisition was first announced in September of last year, at which time Microsoft announced it would spend $7.2 billion — a price which has apparently risen slightly due to “purchase adjustments relating to net working capital and cash earnings” — on what was once Nokia’s mightiest division. As the deal neared closing, however, a few factors stood in the way.

Namely, approval of the deal was delayed in China where Google and Samsung stalled by asking local authorities to consider how it could impact patent licensing fees. India was another sticking point for the acquisition as one of Nokia’s factories there experienced some tax-related issues.

In fact, this tax conflict was unable to be resolved in time. As a result, Nokia will keep a factory in Chennai that employs 8,000 and turns out millions of handsets every year up and running. The factory has been frozen by Indian authorities following allegations that Nokia “wrongfully claimed tax exemptions on software exports,” according to The Wall Street Journal. Still, this factory will technically be in service of Microsoft going forward as Nokia has entered into a service agreement to produce phones for the software giant as a contract manufacturer.

As for Microsoft, this marks perhaps the boldest step toward hardware manufacturing in the company’s history. The company isn’t new to the area, of course — think Xbox and the Surface line of tablets — but managing the sheer variety of Windows Phone handsets Nokia tends to release is definitely a new direction for Microsoft.




Edited by Stefania Viscusi

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

2015 In Cybersecurity: Sadly, Another Bumpy Year is Ahead

By: TMCnet Special Guest    1/27/2015

After a rough 2014 for cybercrime, it would be great to say, "Oh, that speed bump is behind us," or, "We built some magic widgets that will solve the …

Read More

Content Translation in the Mobile Era: 3 Lessons to Learn the Easy Way

By: TMCnet Special Guest    1/26/2015

The tech industry is working hard to destroy the virtual Tower of Babel. If you only speak English and Skype a Spanish speaker Microsoft will now tran…

Read More

Super Bowl Sunday - Game on for TV Everywhere

By: Bob Wallace    1/22/2015

NBCUniversal is using the largest annual live sports viewing stage - the Super Bowl - to pitch consumers the benefit of a cable TV subscription - by o…

Read More

Corporate Video Usage Widens and Gets Creative

By: Tara Seals    1/22/2015

At least 40 percent of organizations that use real-time video applications are employing it in more than a dozen use cases.

Read More

Eat Your Heart Out Apple: Dell Tablet to Film Hollywood Movie

By: Rob Enderle    1/19/2015

I don't mean the tablet will be used in the film, I mean it will be used as the camera to create the movie. The tablet in question is the Dell Venue 8…

Read More