Microsoft close Nokia deal
At one time they were the most dominant handset in the phone business, yet as of Friday 25th April, Nokia’s former product line is now in the possession of Microsoft following the completion of their sales deal.
The cost of the handset business is likely to have been around £4.5billion as Microsoft takeover the Nokia branch, with two factories, in India and Korea, being left out of the deal.
Nokia said that due to an ongoing tax dispute with Indian authorities, it would operate the Chennai factory as a contract manufacturing unit for Microsoft.
It also said it will close a plant in Masan, Korea, which about 200 staff currently work at.
Nokia added its board of directors was due to meet early next week in relation to the company's strategy assessment as it looks towards an unknown future.
A media report released earlier on Friday said Nokia would outline its new strategy on Tuesday 29th April along with its first-quarter results, and that it would also nominate Rajeev Suri, the head of NSN, as the new group CEO.
Microsoft CEO, Satya Nadella, was delighted to have completed the deal and said the company was delighted to be able to expand their mobile-business.
He said: “Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation.
“Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Meanwhile, former Nokia President and CEO, Stephen Elop, will now serve as executive vice president of the Microsoft Devices Group, overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.