Satya Nadella
432

Microsoft completes its acquisition of Nokia

As previously reported, today marks the day when Nokia and Microsoft ceased being two parties with similar goals evolved around Windows Phone. Both companies have fired out press releases detailing the finalization of the deal seeing Microsoft absorb the phone business from Nokia.

From today, Nokia will be formed of HERE, Nokia Solutions & Networks, as well as further developments. The handset side of Nokia will now be part of Microsoft. Nokia's Devices and Services unit has been sold to Microsoft for €5.44 billion (US$7.3 billion) and will be renamed as Microsoft Mobile Oy. Stephen Elop, pictured above with Microsoft CEO Satya Nadella, will move to Microsoft to lead the hardware division.

Check out the Microsoft press release below.

Source: Microsoft, Nokia

Microsoft Corp. announced it has completed its acquisition of the Nokia Devices and Services business.

The acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world. The completion of the acquisition marks the first step in bringing these two organizations together as one team.

"Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation," said Microsoft CEO Satya Nadella. "Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world."

Reporting to Nadella is former Nokia President and CEO Stephen Elop, who will 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. Microsoft welcomes personnel with deep industry experience in more than 130 sites across 50 countries worldwide, including several factories that design, develop, manufacture, market and sell a broad portfolio of innovative smart devices, mobile phones and services. As part of the transaction, Microsoft will honor all existing Nokia customer warranties for existing devices, beginning April 25, 2014.

Windows Phone is the fastest-growing ecosystem in the smartphone market, and its portfolio of award-winning devices continues to expand. In the fourth quarter of 2013, according to IDC, Windows Phone reinforced its position as a top three smartphone operating system and was the fastest-growing platform among the leading operating systems with 91 percent year-over-year gain.1 Furthermore, with the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity,2 delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world.

Microsoft will continue to deliver new value and opportunity, and it will work closely with a range of hardware partners, developers, operators, distributors and retailers, providing platforms, tools, applications and services that enable them to make exceptional devices. With a deeper understanding of hardware and software working as one, the company will strengthen and grow demand for Windows devices overall.

As with any multinational agreement of this size, scale and complexity, Microsoft and Nokia have made adjustments to the deal throughout the close preparation process. As announced previously, Microsoft will not acquire the factory in Masan, South Korea, and the factory in Chennai, India, will stay with Nokia due to the tax liens on Nokia's assets in India that prevent transfer. As a result, Microsoft will welcome approximately 25,000 transferring employees from around the world.

More information about Microsoft's expanded family of devices and services is available here.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft refers to Microsoft Corp. and its affiliates, including Microsoft Mobile Oy, a subsidiary of Microsoft. Microsoft Mobile Oy develops, manufactures and distributes Lumia, Asha and Nokia X mobile phones and other devices.

For further information regarding risks and uncertainties associated with Microsoft's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Microsoft's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft's Investor Relations department at (800) 285-7772 or at Microsoft's Investor Relations website.

All information in this release is as of April 25, 2014. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

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Reader comments

Microsoft completes its acquisition of Nokia

432 Comments

Yep Congo but they should have named the handset division as surface mobile

ND wish Chennai plant was also under the deal
Sigh it was left out bec. Of stupid court demands underseeking the fact it moved towards 8000 workers unemployment

Surface Mobile would work in the USA but not Europe or Asia. Brand recognition is very important with the Nokia brand being so prominent in more than 90% of the world it's going to be interesting to see how this is accepted.

It'll be interesting to see what affect this will have on sales, particularly in Europe where Windows Phone was actually gaining traction.

Well, according to grandmaster expert DJCBS, WP's existence will eventually vanish since what Europeans really care is not the WP brand, but Nokia.

Well, I am just quoting the expert, I tell ya.

you are right, but there had been reports that they  will continue to use Nokia brand on smart phones and not just feature phones.

MSFT gets the rights to use the Nokia branding on hardware for 10 years from the close date, IIRC. It was part of Elop's original press release.

Check Nokia's official twitter account, they have confirmed that they will use the Nokia brand on Lumia devices too.

Well he is right. Not even 3% of world population know s about WindowsPhone, it mostly sold in Asian countries like India and many other because it was Nokia now no one is buying it here or in France, Germany, etc are going for iPhones or Androids instead. The shift is very evident. Trust me Microsoft hampered the sales of their own Mobile OS, actually ppl bought it bcuz it was Nokia and a long earned brand trust.

If I'm buying an expensive stylish phone then it'd be iPhone.
If ppl need a Samsung it'd be an Android not WP.
HTC already withdrew
No major players of tier A are in for WP

According to Nokia, they are getting a slightly higher amount than posted. And the only thing I don't get is why Microsoft is paying this much when they don't have the plant included.

Remember the day of the acquisition when DJCBS said that the EU and Nokia's shareholders would never let this happen? Yeah, those were the days.... (;
Now Microsoft is the second largest phone maker by sales. Its Friday. Today is a good day.

Correct. Nokia was the first to break 100 million annual phone sales (total phone sales, not just smartphones), and until 2010 or 2011 was the largest manufacturer by volume, which Samsung has since taken. If just smartphones, it's a similar statistic.

I don't recall ever seeing a Microsoft phone... So Microsoft is nothing in the mobile business until they produce the first phone. Unlike what Microsoft fanboys would like, Nokias phones didn't magically turned into Microsoft phones.

Nokia is nothing in mobile, they are dead.

Poor boy, is there anything more sad than being a Nokia fan? Even BlackBerry is still around.

I don't read any of those blogs, though, so that reference is lost on me.

Also...are you sure you want to mention the Kin? =P

It was a decent feature phone. It's downfall was a cocktail of different things: Poor dev team leadership @ MS, being split between many different departments under "PMX" collaboration, Separation from the WP7 team (thus OS differences, with similarities), lack of app store, late production, poor marketing as a smartphone, lack of basic apps (calendar for instance), data plan changes by Verizon causing an inflated cost, etc...

I bought one a few years ago, and it overall wasn't a bad device. In fact, some of its features were ahead of its time, such as studio, which, from my research, appeared to of been better for syncing user content than the fragmented OneDrive/Outlook/People offering we have today.

My point is: Its a Microsoft phone. That's where my interest ends ... I don't really care about it, how it performed, how it sold ... Etc.

Any idea whether buying a Lumia now is still safe ? I was keeping an eye on the 930, i hope the nokia lumias wont be discriminated against the Microsoft lumias.. ?

Oh, I will be buying the Nokia Lumia 930, whatever. Sure it will be excellent quality and last for years, like the 920.

Lol!!.... Just get the phone you want... It's just a smartphone dude.. It's not like your childs daycare was taken over by new management... Lol!!

Depends on what you mean by "safe". In a security perspective, they'll be as safe as Samsung or HTC devices.

Do I recommend buying phones to Microsoft? No. I do not. Specially if you're not in the US. Because Microsoft's services suck big time outside of the US. As for the 930, check with your local ex-Nokia Care Centre how will the warranties, repairs etc work from now on. If they remain open and will assist, you may buy a 930 relatively safely since you'll have that Care Centre to serve you. If not, then I'd advise against it.

Microsoft can't cover ever square inch of the planet with service my man,so deal with it and quite using that as an excuse ever time there is a article about the Microsoft and Nokia deal.

Microsoft can't cover every square inch of the planet...you're right. But Europe? Really? They can't cover Europe decently? Actually, they can't cover anything that isn't the US? Poor Microsoft. They're too small and poor to be able to do that, isn't it?

Parts of the U.S still have no service or very limited.It's not as easy as you are trying to make out to be,but Tec heads like us want everything right know:)

When I mentioned Microsoft's Services I wasn't thinking only of Microsoft Stores. I was talking also about other stuff including software services. I won't even mention Cortana, but Bing, for example, is pathetic to use in Europe. And you'd think that at least a continent as important as Europe would be treated with some parity by Microsoft. Yet, no.

We should talk about CORTANA,it's beta software just released.Did you expect Microsoft to go full throttle on beta software and release it world wide?Not going to happen. Software services is what I'm talking about. Some of my family in parts of the U.S have no service or limited bordering on pathetic.Does Microsoft need to step it up?Yes.No doubt. I live thirty minutes outside of Los Angeles so no problem with services or Microsoft Stores with me,lol.

A continent as important as Europe is also a continent that pounce on Microsoft like a mad dog for any chances they get while slapping Google
on the wrist only for they 'mischievous' behaviour.

Treated with some parity? Yes, after checking with the lawyers they are not killing the competitions with their monopoly or their product got a 'sky' word in it.

Microsoft Mobile OS (aka Nokia Devices and Services Division) is a wholly owned subsidiary of the Microsoft corporation. From what I've read, they will be operating somewhat independently from Microsoft. With that in mind I would expect no change in their already excellent customer support. I'm sure DJCBS will vehemently disagree, but then again, he can find no good in anything Microsoft.

Apart from the reason that the 930 is very high quality, has a glorious screen, an out of this world performance and the second best camera on a smartphone today, it'll probably be the last Lumia to bear Nokia's brand on it.

To quote from Romeo and Juliet:

"What's in a name? that which we call a rose
By any other name would smell as sweet"

Maybe you missed the part in the article where it said that Microsoft will honor all Nokia warranties going forward. So Lumia 930 will be a great buy.

You must be young. There was a Windows phone before the iPhone and Android phones. I had 2 - Palm Windows Treo and Sprint Touch.

Posted via the WPC App for Android!

Ha go tell them that we will plague them with a disease called Steven Elop and make us the nominee of their property. And then we'll be better than them..
How stupid analogies ppl can make seriously..
Microsoft is nothing more than a Virus to many Successful ventures like Skype, Nokia, etc. So what Microsoft does is act a leech to win over others.. Huh loosers

Most probably you're one of the blind fans of Microsoft, who won't believe that Nokia CEO Steven Elop was a an ex-Microsoft employee who was sent to Nokia as a Trojan because Microsoft needed a Hardware subsidiary pretty much like Apple & BB.

And that Elop cancelled Nokia Android tie up, Sold home grown OS Meego & Maemo.

I told him that he's not going anywhere... I want him to stick around... I actually like him. I think he's smart.. I don't agree with some of the things he says, but oh well..

Well, thanks for the compliment =P

I will stick around. As I've said before, I'll still be using the 1020 as my dedicated camera so I need to know what's going on with WP. And if Sony ever releases a WP device, I might even return to the OS.

Exactly if only Sony would make one, but I don't see it happening and thus gonna retire my Nokia Lumia 820 but not 920 because of the elegant industrial design, which would soon be effed up by Microsoft.

I don't know him so I don't know if he is smart or not.  However, I know from the way he berates others instead of supporting his own arguments that he thinks he's smarter than everyone else here, so that's enough for me to disregard his opinions.

And I will keep my word. I've just ordered a Z1 Compact which still comes with Android 4.3 (and hence, no limitations on saving apps to the MicroSD card).

However, if you think I'll stop using WP, you're mistaken, since my 1020 is still my dedicated camera (and my current daily driver until the Z1 arrives and the 920 returns from Nokia). So I'll still be reading WPCentral.

Just curious, are you on Instagram? And if you are what's your username. Coz I'd like to follow anyone with a Lumia 1020 with an Instagram gallery.

Yes, I do remember reading that. Speculation based on nothing more than their own opinion..But here we are. The deal is done. . Just like we all figured it would.

Wow, would the EU prefer it closing down or it being bought out by Samsung instead of MS. Sammy would have just taken the tech and factories and let everything else Nokia die.

Nokia is a very important trademark in Europe. A phone with Nokia written on it has its importance.
It's like the sin's apple logo on your laptops guys :P
If Apple disappears, a lot of Americans would be disappointed, the same is now in EU with Nokia.

Nokia's services are fabulous here in Brazil. Nokia Care is really excellent; Microsoft's support, on the other hand...

I just noticed an interesting trend by Nokia..... In the Lumia 520, the words 'Nokia' are emblazoned in bold, whereas in the 525, they are printed in a very faint manner.....I think the Nokia branding will just disappear......

THE ALL TIME PERFECT COMMENT❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗❗
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THAT WAS WELL SAID!

*knocks on wood*

Please, no. Nothing against the poster, but the last thing I want or need in my life is children. I also have no patience for them. So, no. No children, thanks. ;P

Microsoft Mobile replaces name of holding division. I am sure they will brand it to Lumia or WP or Surface Phone. Microsoft mobile is too much of Ballmer type, not at all Satya type.

Unless they keep Lumia or use the Surface branding (possibly for a Surface Phone), it would make sense to name their in-house phones "Windows Phone 00" that way people can refer to their phone as a "Windows Phone - 00" the same way you'd refer to a Nokia Lumia as a "Lumia 00" or "00"

Examples:

Nokia Lumia 920 / 930 / 1020 / 1320 / 1520 / 2520
Windows Phone 920 / 930 / 1020 / 1320 / 1520 / 2520

Nokia's number branding was boring and unoriginal...which made it unappealing to the non-Nokia fan market.

I really hope they don't keep random numbers... the numbers don't really mean anything to anyone outside of the hardcore windows phone fans.   There don't seem to really have any rhyme or reason to them..  I mean to an extent, yes.. the 920 is "not as good" as the 930... but then you get down too   920 vs 925 vs 928... which is one thing then the Icon is supposed to be the 929, right?  Just a bit confusing for the consumer I think.

Seriously? If i just look at the Samsung's range of phone name I would have no idea which is which, except those famous one like S series

Branding should be done with care that Nokia brand remains and Microsoft also excels from it not only by profit but by goodwill

Microsoft Lumia would be much stable. But I doubt whether Microsoft is allowed to use the Lumia branding.

I was thinking Kermit and Ms piggy. In all seriousness, going by the picture at least, your sought of glad the right guy got picked as CEO

Don't insult Wozniak, please. Eflop couldn't come up with anything useful is his life depended on it. Wozniak built Apple. We may not be fond of what he built, but the guy has way more merit than Eflop will ever have.

Everyone knew this was going to happen as soon as a Microsoft exec took over Nokia. The writing was on the wall three years ago.

Lets just hope they don't balls out up.

This is the only way I would retire my 1520. There's nothing that comes close to prying this out my hand.

I have a quandry. I am deploying in the near future. I'd LOVE to get my L1520 unlocked and take it with me. However, last time I deployed, I ruined a digital camera with the environment I was in. I have a L920 or a L520 that I could take in its place. I'd be super jealous of any update the L1520 would get while gone though.

Surface Phone would be awesome, if it had a Nokia camera, because the camera on the Surface tablet is crap!

That's nothing like iPhone 5's design... if Apple were going to sue for that, they'd have to sue for the design of the Surface and Lumia Icon.

Even still, it's not like iPhone 5 is truly original either. Like most things Apple claims to their name, it is stolen... and we can find the two-tone thing from the original Galaxy S and Samsung Focus Flash. Likely even further back as well.

TLRtheory; That was published 2012, and looks like MS version of iPhone design wise.

Nope, I want surface phone concept with its own orignality and not possibly iPhone wananbe

I don't see how it goes the iPhone at all. It's effectively a Surface RT at a smaller dimension with a Windows Phone front. I'd love a phone like this.

Terrible photo "lets have you two rich dudes walk down an empty road used in iron man 3 while holding a Lumia"

Reminds me of the scene in Shawshank Redemption when Warden Norton took Tommy outside to have him shot. Long range sniper rifle, Sataya gives the nod... The plot for Nokia's downfall goes to the grave.

I think they tried, but some lunatic at Blackberry thought they still had a chance to be number one! Of they had let Microsoft buy them Blackberry would still be the best phones for companies, mixing the blackberry experience with the Windows ecosystem.

Or maybe another miracle will happen and the general population will finally realize that Microsoft isn't a bad name anymore... One can dream...

I just noticed an interesting trend by Nokia..... In the Lumia 520, the words 'Nokia' are emblazoned in bold, whereas in the 525, they are printed in a very faint manner.....I think the Nokia branding will just disappear.

My predictions...

MS will keep the Lumia name for WP phones/phablets. And Surface for tablets.

Just like Surface they will simply brand the phones Lumia (ie the Microsoft name isn't prominent on the Surface products).

MS will probably not keep using the 3-4 digit model names.

No, check Nokia's twitter account, they have confirmed that they will use the Nokia branding on Lumia devices too.

What a great start to my weekend! "Welcome Nokia, let's create some extra ordinary cross breeds between my software and your hardware. My place! ;)" said Microsoft tonight.

...wtf? Why would that even enter your mind? It's an American-owned company based in Finland (Oy is like our Inc. or GmbH in Europe) with factories worldwide that have their biggest markets in Eurasia.

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