Microsoft officially Acquires the Nokia Devices and Services Business.
Its finally become official, as of today, Nokia’s Devices and Services business is now owned by Microsoft.
Microsoft Mobile Oy will now become a subsidiary of Microsoft responsible for Lumia, Asha and Android-based Nokia X phones, and other unspecified devices. The new name and status is the pinnacle of Microsoft’s acquisition of Nokia’s handset business, which cost Redmond $5 billion (plus an addition $2 billion for a 10-year associated patent-licensing agreement.
Microsoft Mobile Oy has become integrated into Microsoft Devices Group headed by Stephen Elop, the Executive Vice President. The Mobile Devices Group is responsible for Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.
Now, for the patent piece of the deal, Microsoft acquired 8,500 design patents covering phone manufacturing from Nokia. Microsoft will also be licensing another 30,000 “utility” patents from Nokia for the next ten years, with the option to renew in perpetuity.
While Microsoft may not be making an further branding announcement for the moment, that doesn’t necessarily mean that any future phones or tablets will be branded under the Microsoft name. Microsoft licensed the rights to Nokia brand for existing phones when it announced plans for the acquisition during the previous fall, it also outright bought the Asha and Lumia brand.
As a result of Nokia acquisition, Microsoft will also be acquiring approximately 25,500 new employees located in 50 countries, plus several factors that design and manufacture the devices. During this past September, Microsoft was expected to acquire 32,000 employees. The two factories that were not apart of the acquisition are the ones in South Korea, plus the one in Chennai, India.
As of April 25, 2014, Microsoft will become the company that will handle all of Nokia currently existing Nokia customer warranties for currently existing devices.