Microsoft-Nokia Merger Now Official: What the Deal Means

By Prarthito

| Published: Friday, April 25, 2014, 18:27 [IST]

Finally the day we have all been hearing about is here. Microsoft has announced that it has officially completed its acquisition of the Nokia Devices and Services business. The new acquisition has been approved by Nokia shareholders and by governmental regulatory agencies around the world.

As decided between the companies, former Nokia President and CEO Stephen Elop will now be reporting to Microsoft CEO Satya Nadella.

Microsoft-Nokia Merger Now Official: What the Deal Means

And as a part of the deal, Mr. Elop will now serve as executive vice president of the Microsoft Devices Group. He will be overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.

"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."

An Uncertain Future
But while all that sounds pretty interesting and exciting, what are the fine points of the deal? What exactly is happening, or is expected to happen, with the deal now up and running? Apparently, the first thing that's of concern is the unkown fate of the 7,500 workers currently employed at Nokia's facotry in India.

If you know by now, Microsoft has already announced that it will not acquire the factory in Masan, South Korea, and, more importantly, the factory in Chennai, India.

The factory in Chennai will now stay with Nokia due to the tax liens on Nokia's assets in India that prevent transfer. "And as a result of that, Microsoft will welcome approximately 25,000 transferring employees from around the world," the official release states.

Another important thing that the deal brings to the picture is that Microsoft will be using the Microsoft Mobile brand name to release any further Windows Phone-operated devices.

However, Nokia will still be entitled to retain its brand name so that if it decides to re-enter the mobile market in the near future, it can do so with its already popular brand name.

Final Word
As of now, while the future remains uncertain for Nokia, Microsoft, as well all those workers over at Nokia's Chennai facility, it will still be interesting to see if Nokia again decides to jump into the mobile market.

And even if Nokia does decide to come in once again into the smartphone business, will it be still running the Windows Phone platform? Or will it adopt something entirely new? Only time will tell.