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Friday, April 25, 2014
Microsoft Takes Control of Nokia's Phone Business


Microsoft on Friday finalized completed the acquisition of Nokia's Devices and Services business, and Microsoft Mobile Oy is now the subsidiary of Microsoft responsible for Lumia, Asha and Nokia X phones, and other devices.

The acquisition cost Redmond $5 billion, plus another $2 billion for a 10-year associated patent-licensing agreement.

Microsoft Mobile Oy will be headed by Executive Vice President Stephen Elop. Thenew group is now responsible for Lumia smartphones and tablets, Nokia mobile phones including the Android-based Nokia X phone, Xbox hardware, Surface, Perceptive Pixel (PPI) products, and accessories.

Microsoft also licensed the rights to the Nokia brand for existing phones when it announced plans for the acquisition last fall. It also bought outright the Asha and Lumia brands.

Microsoft also is acquiring approximately 25,000 new employees located in 50 countries, plus several factories that design and manufacture devices. The two factories that are not part of the acquisition are one in South Korea and another one in Chennai, India.

And as of today, Microsoft is the company that will be handling all existing Nokia customer warranties for existing devices.




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