Microsoft Closes Deal with Nokia, Making Itself a Phone Company

A Windows Nokia Phone is seen on display at Microsoft's annual shareholder meeting in Bellevue, Washington November 19, 2013. CREDIT: REUTERS/JASON REDMOND
A Windows Nokia Phone is seen on display at Microsoft’s annual shareholder meeting in Bellevue, Washington November 19, 2013.
CREDIT: REUTERS/JASON REDMOND

As announced earlier this week, Microsoft’s purchase of Nokia’s Devices and Services division has closed almost four months later than expected.

Redmond is paying about $5 billion for the Nokia division, now named Microsoft Mobile Oy, and some 8,500 design patents. The software giant is also paying another $2 billion for a ten-year license for 30,000 utility patents, with an option to renew the licenses in perpetuity.

Nokia is, however, keeping hold of two factories. Nokia will operate its 7,500-person factory in Chennai, India, on Microsoft’s behalf. The Finnish firm is involved in a tax dispute with the Indian government centered around the plant, and Indian authorities have blocked its transfer until the dispute is resolved. Microsoft announced earlier in the week that it would not take ownership of Nokia’s South Korean factory.

Even without these factories, Microsoft is still increasing its headcount by some 25,000, for a total of 126,000 employees.

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SOURCE:  
Ars Technica

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