Microsoft Corporation (NASDAQ:MSFT) Nokia Corporation (ADR)(NYSE:NOK) deal worth USD 7.2 billion would come to a close by end of April. With the closing of this deal, devices and services business will be renamed to Microsoft Mobile. There has been no official announcement about this change of name, but it is rumored that the company has issued a letter to its suppliers.
The letter/mail, a copy of which was obtained by Nokiapoweruser reads – “Please note that upon the closure of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices.”
Official address changed
Newly created Microsoft Mobile division will remain in Finland, but the official business address will be changed to Keilaranta in Espoo from Nokai HQ on Keilalahdentie.
The world will get to see and know a new Nokia Corporation (ADR)(NYSE:NOK) with a different name. Microsoft Corporation (NASDAQ:MSFT) is not going to buy just Nokia’s mobile phones division, but the feature phones manufacturing teams, as well. The mobile manufacturing unit at Finland will exist as a subsidiary that will be full owned by Microsoft. The divisions responsible for network equipment business and Here maps will not be under Microsoft though.
As per terms of the deal, Microsoft Corporation (NASDAQ:MSFT) has acquired the right to use Nokia brand name for 10 years.
Nokia to focus on other segments
Nokia phones are available under the brand names; Lumia and Asha, and Microsoft Corporation (NASDAQ:MSFT) has bought the rights to use these. Also, it has been agreed by Nokia that it will not manufacture any phone or smartphone using the brand name Nokia before the end of 2015.
Although the name Microsoft Mobile will replace the name Nokia soon in Finland and other countries, it is said that no substantial changes would be made in the near future for Nokia’s business partners. NSN, HERE Maps and Advanced Technology Unit are the company’s main operations and these deal with hardware, therefore, Nokia Corporation (ADR)(NYSE:NOK) might not need few of these. Rumors have it that Nokia is working on the manufacturing and launch of SmartWatch whose development may or may not be carried on.