Written by Kumudu Jayawardana
21 Apr, 2014 | 9:25 am
Ahead of the closure of Nokia-Microsoft deal before the end of April, a leaked letter in Finland shows that Nokia Oyj will be soon renamed Microsoft Mobile Oy.
According to a report on wmpoweruser.com, a website that tracks developments related to Windows Phone, in a letter Nokia has told its sellers in Finland that the deal with Microsoft will close soon. Both Microsoft and Nokia had said in March that the deal would close by the end of April.
“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 company reportedly said in the leaked letter.
Oyj is a Finnish abbreviation for a “public stock company” while the Oy is a term for a “corporation”.
The closure of the deal doesn’t really mean the end of Nokia. Instead, it means an end to Nokia as the world knows it. Microsoft is buying Nokia’s mobile phones division, including the teams that make feature phones. But it is not buying the divisions that are responsible for network equipment business and Here maps. The company left behind by Microsoft will also keep rights to its name Nokia though Microsoft has bought the licence to use the Nokia brand name for 10 years as part of its $7.2 billion deal.
Additionally, Microsoft has bought rights to use Lumia and Asha brand names. As part of the deal, Nokia has also agreed to not make a smartphone or phone using Nokia brand before the end of 2015.
While the name Nokia will be replaced by Microsoft Mobile in the coming days in Finland — and possibly in other countries — not much will change for Nokia’s business partners in the immediate future.
“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,” Nokia notes in the leaked letter.
Originally, Nokia’s deal with Microsoft was supposed to close before the end of March. But the regulatory approval from Chinese authorities was received just several days ago. Nokia’s problems with Indian tax authorities over the manufacturing plant in Chennai have also reportedly delayed the deal. But there are reports that Nokia and Microsoft may agree to leave the Chennai plant out the deal in a bid to wrap up the sale before the end of April.
SOURCE: Foreign Media
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