Nokia Oyj will now be called the Microsoft Mobile Oy, according to a letter sent to the suppliers. After the deal between Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (ADR)(NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) concludes, the devices and services segment will get a new name. As per the letter, a copy of which was obtained by Nokiapoweruser, the new wholly-owned subsidiary will be the mobile devices division of Microsoft, and the terms and conditions of the supplier’s contract will remain unchanged after the deal is done. In Finland, Oyj stands for a “public stock company” while the Oy means a “corporation”.
“Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy,” read the letter.
Suppliers contract to remain intact
Last year, Nokia Corporation (ADR)(NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) was acquired by Microsoft Corporation (NASDAQ:MSFT) for $7.2 billion, and the process was said to be finished by first quarter of this year. However, the deal could not be concluded due to antitrust reviews in Asia, and was extended until April.
Voss Capital's flagship long/short equity strategy, the Voss Value Fund, returned 23.3% to investors net of fees and expenses in the first quarter of 2021. Q1 2021 hedge fund letters, conferences and more According to a copy of the firm's first-quarter investor letter, which ValueWalk has been able to review, the Texas-based asset manager's gross Read More
Microsoft has acquired the rights to use the Lumia and Asha brand names. Both parties agreed that Nokia will not manufacture smartphones using the Nokia brand before the end of 2015.
Nokia stated in the leaked letter that Microsoft Corporation (NASDAQ:MSFT) is fully authorized to all rights, benefits and obligations of Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners.
“Therefore, the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change,” Nokia notes in the leaked letter.
Nokia to focus on other segments
Nokia Corporation (ADR)(NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is the most important Windows phone partner of Microsoft, competing with the likes of Apple’s iOS and Google’s Android.
Nokia Corporation (ADR)(NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) does not end here, but for customers for whom Nokia is a synonym of a handy, durable and budget phone, the deal marks the end of an era. Microsoft Corporation (NASDAQ:MSFT) is also buying the feature phone division of Nokia. However, Nokia’s other divisions that are in network equipment business and HERE maps may still stay relevant. Nokia has also retained the right of its brand name, but Microsoft has bought the license to use Nokia’s brand name for 10 years under the $7.2 billion deal.