Nokia Name to be Rebranded Following Microsoft Deal
Nokia’s handset business is to be re-branded following the company’s acquisition by the tech giant Microsoft. The deal is set to be finalised this coming Friday after a delay of several months. The transaction will take place after a few changes to the original agreed deal were made. The tweaks involve the Finnish company’s factory in India and manufacturing facility in China.
Microsoft was set to acquire the troubled Finnish company’s patents license and mobile phone business in a cash deal worth €5.4bn last September. However, the transaction was held up by China’s regulators until the beginning of this month when approval was finally granted.
The deal will no longer include Nokia’s large factory in Chennai, India due to a continuing and somewhat complex separate dispute over tax. Other changes to the original agreement involve Nokia’s Korean based manufacturing facility which is not part of the deal either.
Microsoft has, however, agreed to keep on 21 employees from Nokia’s main technology office in China. The tech giant also announced plans to manage the Nokia.com website and social media sites for the twelve months following the deal.
Although Microsoft’s acquisition of the Finnish company would appear to be the end of Nokia as we know it, many industry-watchers see the move as giving the troubled European company a “new lease of life”. Analysts believe this to be a sound move on the part of Nokia, a company which over recent years, has witnessed a significant erosion of its share of the market due to the more successful endeavors of Samsung and Apple.
On Monday last, Microsoft released a statement saying it was set to “seal the deal” on 25th April at which time key steps would commence to integrate the new acquisition into its ever growing mobile phone portfolio. With the computer software giant taking control on Friday, the company announced it would be ditching the Nokia Corporation name with the intention of be re-branding it to Microsoft Mobile Oy.
Stocks in Nokia went from 3.04 euros to 5.82 euros per share when the deal between Microsoft and the Finnish company was announced in September of last year and on Tuesday of this week, Nokia shares traded at 5.33 euros which was 1.9 percent higher on the day.