End of Legacy (25 Apr 2014) – Nokia completes sale of ‘Devices & Services’ business to Microsoft
25th Apr 2014 – A date to remember ..
Well not feeling really good to write about this topic but things change with time & same is the case with Nokia. One has to move on in life & that is what Nokia is exactly doing with a positive approach & we appreciate it.
‘NokiaTheOne’ started about year & a half back when Nokia had already taken the Windows Phone route & talks in the air suggested a lot many things, despite all this, we decided to keep ‘Nokia’ at the center stage in naming of our Blog & feel really proud about it and will continue to do so.
Things are definitely emotional from a fans or bloggers point of view and nothing can replace it but most importantly nothing changes from ‘Users’ point of view. In-fact things can only get better for users from here onwards with the merging of two giants Nokia & Microsoft.
Let’s have a look at some of the official writings from both Nokia & Microsoft.
For our readers here on Conversations and our fans across the world, today is a beginning of something new. But we’re happy to report that many of those things that matter to you most will stay the same.
As Microsoft, we will continue to produce, sell and support the phones and devices you have come to love, including our award-winning Lumia and Asha ranges, feature phones and the Nokia X family of devices.
The hardware engineering and design talent that produced world-leading devices under Nokia ownership will continue to set the mark for new mobile experiences and innovation.
And the software innovation continues too. The unique imaging, music and location experiences that are such a valuable part of our devices will continue to be developed, supported and enhanced. Software updates and the continued growth of our app and device ecosystems are now more important than ever.
Importantly for existing customers, we will bring you right along with us. Your device warranty is completely unaffected by this change and the same world-class customer service and support teams will continue to look after your devices. You can still get all the help and support through the usual channels: online support, contact centers and local Nokia Care points.
And we’ll continue to take good care of your personal data – our commitment to your privacy remains paramount.
Your friends at Conversations will still be here, too, along with the social channels you follow. The Conversations blog and discussions forums, together with country-specific Facebook pages and Twitter accounts will continue to offer news and information about our devices and services, run by the same people and teams now at Microsoft.
Nokia’s global Facebook, Twitter, LinkedIn and YouTube accounts, as well as Nokia Finland’s Facebook and Twitter accounts, will have news and updates both from Nokia as a company and about Nokia-branded devices and services from Microsoft.
So today, most things will remain the same.
But today is also an exciting day for us, and a historic day for the industry. And none of this would be possible if it weren’t for you – our readers and fans across the world. We have experienced many things together and we hope you join us on this exciting journey too!
Six months ago, we announced our plans to bring the best of Microsoft and Nokia Devices and Services business together. Today is an exciting day as we join the Microsoft family, and take the first, yet important, step in our long-term journey.
At our core, we are passionate about building technology that will change the world. From the early vision of Microsoft of placing a PC in every home and on every desk, to Nokia connecting billions of people through mobile devices, we have empowered generations. But we could not have achieved any of this without our fans around the world.
Your support has created strong momentum for Nokia Lumia smartphones and they continue to grow in popularity around the world. Last year alone, the awards, accolades and fan-generated rave reviews offered proof of the growing number of champions for our phones and tablets.
And we are committed to continuing our support for feature phones, the Asha family, and the Nokia X family of devices, announced at the Mobile World Congress in February.
Whether you want to read more, capture more, watch more, listen more or get more done, Nokia mobile devices have been and are your go-to choice.
As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer.
Together, we can connect and empower people with one experience for everything in their life in a world where it is mobile first and cloud first.
From today onwards, the possibilities are endless. As now, we’re one!
Stephen
Espoo, Finland – Nokia today announced that it has completed the sale of substantially all of its Devices & Services business to Microsoft.
The transaction, which also includes an agreement to license patents to Microsoft, was originally announced on September 3, 2013.
As earlier communicated, the transaction was subject to potential purchase price adjustments. The estimate of the adjustments made for net working capital and cash earnings was slightly positive for Nokia, and we currently expect the total transaction price to be slightly higher than the earlier-announced transaction price of EUR 5.44 billion after the final adjustments are made based on the verified closing balance sheet.
Additionally, as is customary for transactions of this size, scale and complexity, Nokia and Microsoft made certain adjustments to the scope of the assets originally planned to transfer. These adjustments included Nokia’s manufacturing facilities in Chennai in India and Masan in the Republic of Korea not transferring to Microsoft. These adjustments have no impact on the material deal terms of the transaction and Nokia will be materially compensated for any retained liabilities.
In India, our manufacturing facility is subject to an asset freeze by the Indian tax authorities as a result of ongoing tax proceedings. Consequently, the facility remains part of Nokia following the closing of the transaction. Nokia and Microsoft have entered into a service agreement whereby Nokia would produce mobile devices for Microsoft.
In Korea, Nokia and Microsoft agreed to exclude the Masan facility from the scope of the transaction. Nokia will now take steps to close the facility, which employs approximately 200 people.
Amid the uncertainty for our employees in Chennai and because of the planned closure of our facility in Masan, Nokia plans to offer a program of support, including financial assistance which would give our employees the chance to explore opportunities outside Nokia starting from a sound financial base. The company plans to bring to Chennai and Masan elements of its Bridge program, which we have made available for employees affected by company changes in other sites.
The convertible bonds issued by Nokia to Microsoft following the announcement of the transaction have been redeemed and netted against the deal proceeds by the amount of principal and accrued interest.
As previously announced, the following Nokia leaders have stepped down from the Nokia Leadership Team and transferred to Microsoft at closing, effective April 25, 2014: Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber. Until further notice, Nokia’s interim governance model announced on September 3, 2013 is in place.
Nokia plans to cover in further detail aspects of the closing of the transaction in conjunction with its first quarter 2014 results announcement on April 29, 2014.
Now that the closing of this transaction has taken place, Nokia is arranging a Board of Directors meeting for early next week in relation to its strategy assessment which was originally disclosed on September 3, 2013
Microsoft Corp. has announced the completion of its acquisition of Nokia’s Devices and Services business. The completion of the acquisition marks an important step in bringing these two organizations together as one team, a process that is expected to take 18 to 24 months to complete.
Stephen Elop, former Nokia President and CEO, will serve as executive vice president of Microsoft’s Devices and Studios Group, reporting to Microsoft CEO Satya Nadella. Elop will lead an expanded team made up of Xbox, Xbox Live, Microsoft Studios, Microsoft Hardware, Surface and Nokia Devices and Services.
Microsoft will continue to deliver new value and opportunity, and work closely with a wide 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.
Microsoft refers to Microsoft Corporation and its affiliates, including Microsoft Mobile Oy, a subsidiary of Microsoft Corporation. Microsoft Mobile Oy develops, manufactures and distributes Lumia, Asha and Nokia X mobile phones and other devices.
Three Cheers to Nokia & the team for what it has been .. feeling proud & sad at the same time. Here’s looking forward to Nokia at Microsoft !
Source – Nokia Conversations, Nokia, Microsoft
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