Microsoft’s acquisition of Nokia last year came as a surprise to many, but some were of the opinion that it was for the better future of both the companies. Although the deal was expected to close by the first quarter of 2014, some antitrust reviews delayed the closure. However, the deal is finally going to close on 25th of this month and the mobile phone division of Nokia will soon come under the command of Microsoft.
According to a recent document received by Nokiapoweruser, Microsoft is going to drop the Nokia brand name and will rename the department as Microsoft Mobile. Thus Microsoft mobile will become the fully owned subsidiary of its parent company which deals with everything related to smartphones.
Details Revealed by the Document
Microsoft sent a letter to its suppliers in Finland stating that Microsoft will assume all rights, obligations and benefits of Nokia’s devices business upon the closure of the deal this month. The letter also adds that Nokia Oy will change to Microsoft Mobile Oy and all the dealings like invoices and VAT IDs should be issued in the new name.
The good news is, the current terms and conditions of the contract will not change and so, even if the name has changed, Microsoft Mobile plans to keep the same kind of relationship that these suppliers had with Nokia.
Nokia after the Deal
Although recent years have not been quite good for the Finnish company, Nokia was once the largest manufacturer of smartphones in the world. The company has invested over 50 billion Euros in R&D and has over 30,000 patents under its belt. Many of these patents have not been licensed by the company in order to differentiate its product, however, Nokia Advanced Technologies, (which will be its new name) will probably license them to smartphone and other device manufacturers.
For example, Nokia’s camera technology is considered one of the best in the world. The new company could license this technology to other smartphone manufacturers which could bring in steady income for the company.
The company is also looking for new ventures outside its traditional area but the details of the same have not been revealed till now.
Renaming it as Microsoft Mobile can be a risky decision, given that thousands of customers still trust Nokia as a brand name. So, it would be interesting to see how the business runs under the new name.
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