14 DAY TRIAL // Microsoft has just announced that the Nokia takeover deal has been successfully completed and received the go-ahead from all governmental regulatory agencies across the world. At the same time, Nokia's shareholders have also approved the deal, so now Microsoft can proceed with implementing Nokia's Devices and Services unit into its own business.
Former Nokia President and CEO Stephen Elop will join the software company as executive vice president of the Microsoft Devices Group and will be responsible for every single device built by the Redmond-based giant, including Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories. Elop will report directly to CEO Satya Nadella.
Although it's taking over the Devices and Services unit, Microsoft says that it's honoring all existing Nokia customer warranties for existing devices, beginning April 25, 2014.
“Today we welcome the Nokia Devices and Services business to our family. The mobile capabilities and assets they bring will advance our transformation,” said Microsoft CEO Satya Nadella. “Together with our partners, we remain focused on delivering innovation more rapidly in our mobile-first, cloud-first world.”
Microsoft's $7.2 billion takeover deal of Nokia's Devices and Services business does not include the factory in Masan, South Korea, and the one in Chennai, India, due to opposition coming from the local authorities. They will both continue to work under Nokia's umbrella, Microsoft said.
And still, Redmond will transfer no less than 25,000 Nokia employees across the world who will continue to work on the same projects, but under the supervision of Microsoft.
As far as Microsoft's future plans are concerned, the company said in a press release that it'll focus on the affordable mobile devices market with new products running Windows Phone.
“With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity,2 delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world,” Microsoft said.
The deal between Microsoft and Nokia was officially announced last year in September and took more than 6 months to complete, pretty much because of the negotiations that Redmond had to hold with authorities across the world in order to give guarantees that no competition rules are infringed. Several large companies have asked for regulators to look into the deal and make sure that Microsoft won't use Nokia's patent for its own benefit, including Samsung and Google.