Tuesday, April 22, 2014
Nokia Will become Microsoft Mobile
Microsoft reported that they will close the $7.9 billion purchase of Nokia's handset business this coming Friday. Microsoft general counsel Brad Smith said that the deal was delayed by a month because they needed to clear regulatory clearances in Asia and that it will be completed on April 25.
"This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones," he said.
Nokia was the top mobile maker before it was overtaken in recent years by Samsung and Apple. A leaked online said that Nokia brand will be renamed as Microsoft Mobile according to an article on the site NokiaPowerUser.
The leaked letter seems to be a letter to Nokia's devices and services business suppliers.
"Under the terms of the sale, Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertain to the Devices and Services business. 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.
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. Microsoft Mobile Oy is the legal entity name that should be used for VAT IDs and for the issuance of invoices."
The letter also stated that Microsoft Mobile Oy will be creating new bank accounts, however they will not change the invoice sending method.
Nokia have said that they expect to complete the sale of its Devices and Services Business to Microsoft Corp. this month.
Last September 2013, Microsoft divulge their plans to acquire Nokia for $7.2 billion, and Nokia shareholders agreed to the deal in November.