Nokia Oyj, the Finnish manufacturer of mobile devices, will be renamed as Microsoft Mobile Oy and after merging with Microsoft will become its new division. In the meantime, Nokia’s management has already notified suppliers of the coming transformation.
Nokia has disclosed the future merger deal in its communique saying, “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. 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.” In a nutshell, all ongoing contracts with suppliers are still valid.
Nokia settled a deal selling its Devices&Services business, smartphone and tablet PC production in particular, to Microsoft at €5.44 billion. Nokia expects to seal the deal by late April 2014. However, after merging is completed, the Nokia brand will be used by three business divisions the Finnish company will be still running such as Nokia Solutions and Networks (NSN) producing network hardware, Nokia Here being the GPS brand, and Advanced Technologies dealing with license business and engineering.
Thus, the Nokia mobile devices and services business will be converted into Devices&Services division in Microsoft. Considering this, the new title Microsoft Mobile Oy seems to be a logical step from the viewpoint of marketing future devices. Stephen Elop, the former Nokia CEO, will take charge of the new Microsoft division.
At the same time, calling on its suppliers Nokia expects them to keep on cooperation not only with newly founded Microsoft Mobile Oy, but also with the three businesses left under Nokia’s ownership after the deal is completed.