Nokia Microsoft Agreement

But the most fascinating question, as always, is related to the brand. Read the ad carefully and you will find that if the acquisition of Microsoft is the purchase of Nokia`s sub-brand, Lumia, and its lower mobile phone sub-brand, Asha, it will only have rights to the Nokia brand in relation to current mobile products. According to the agreement, “Nokia will continue to own and manage the Nokia brand.” Under the agreement, Microsoft will pay 3.79 billion euros for the purchase of Nokia`s entire equipment and services business and 1.65 billion euros for the licensing of Nokia`s patents at a total transaction price of 5.44 billion euros in cash. Microsoft will use its overseas cash to finance the transaction. The transaction is expected to close in the first quarter of 2014, subject to agreement by Nokia shareholders, regulatory approvals and other closing conditions. As part of the transaction, Nokia Microsoft enters into its long-term patent licensing agreement with Qualcomm as well as other licensing agreements. Nokia Communications Tel. 358 7180 34900 Email: [email protected] www.nokia.com Nokia will retain its patent portfolio and give Microsoft a 10-year license for its patents at the time of conclusion. Microsoft grants reciprocal rights to Nokia for the use of Microsoft patents in its HERE services. In addition, Nokia will grant Microsoft an option to extend this reciprocal patent agreement for the long term. Microsoft Mobile was a Microsoft subsidiary that was involved in the development and manufacture of mobile phones. Based in Espoo, Finland, it was created in 2014 following Microsoft`s acquisition of Nokia`s Devices and Services division for 5.4 billion euros, which ended in April 2014.

[2] Stephen Elop, then CEO of Nokia, joined Microsoft as President of the Devices division after its acquisition, and this acquisition would be part of Steve Ballmer`s strategy to transform Microsoft into a “services and equipment company.”