updated 03:08 pm EDT, Mon April 21, 2014
Acquired Nokia hardware business to be renamed Microsoft Mobile
Nokia is expecting to complete the sale of its Devices and Services business to Microsoft on April 25th, just as it previously advised. While both Microsoft and Nokia have confirmed the imminent closing of the deal, a letter sent to suppliers has leaked, claiming the division will be renamed to "Microsoft Mobile" sometime after its completion, as well as outlining other terms of the $7.2 billion acquisition.
The Microsoft Blog notes the company will be managing the Nokia.com domain and its social media accounts for up to one year "for the benefit of both companies and our customers." The original deal would have seen all employees in Nokia's Chief Technology Office continue to work with Nokia, but the terms have been adjusted to allow 21 employees working on mobile phones in China to join Microsoft. Nokia's South Korean manufacturing facility was originally going to transfer to Microsoft in the purchase, though this is no longer the case.
While Nokia and Microsoft have received approval from the vast majority of regulators, with a few loose ends left to tie up, there is still at least one major unresolved issue. Regulators in India claim Nokia has failed to pay a tax bill worth around $3.4 billion, an affair that has seen a factory in Chennai raided by tax officials and is still being dealt with in the courts. Nokia insists that the tax issue will not affect the acquisition by Microsoft.
The letter, leaked through Nokia Power User, notes that suppliers will continue to have the same terms and conditions they already have with Nokia's Devices and Services business after the acquisition closes. The letter also asks for suppliers to continue providing for sections of the company Nokia is planning to retain, including its NSN, HERE, and Advanced Technologies sections, and as a whole, is attempting to make the transition as smooth as possible for all parties involved.