Nokia-Microsoft Deal Now Officially DoneBy cheatmaster 07:37 Mon, 19 Jul 2021 Comments
It's done – Nokia has just announced the completion of the sale to Microsoft of "substantially" all of its Devices & Services business to Microsoft. "Substantially" since two factories were excluded from the deal – the Chennai factory in India, but also the Masan factory in South Korea.
The South Korean factory employed roughly 200 people, but Nokia will be closing it down. The fate of the Chennai factory is unclear, but Nokia will be offering financial assistance to its employees so they can "explore opportunities outside Nokia starting from a sound financial base".
The deal underwent other changes too – the final price is expected to be slightly higher than the initially announced €5.44 billion due to a positive adjustment in net working capital and cash earnings.
The leadership team that led Devices & Services at Nokia has stepped down and is moving to Microsoft effective today. This includes former CEO Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen and Chis Weber.
Nokia will create another announcement on April 29 (next Tuesday) to provide further details of the transaction (presumably the fate of the Chennai factory and the final sales price).
You can read Stephen Elop's open letter here. On Monday, Elop will be answering questions at the Nokia Conversations blog.
Let's play the iconic Nokia Tune one more time as we close this large chapter in mobile history.
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