Microsoft has just welcomed Nokia into its fold by announcing completion of the latter’s Nokia Devices and Services business. We first reported about the sale of the Finnish company to Redmond in a EUR 5.44 billion cash transaction in 2013. The amount exchanging hands wasn’t made partially in shares the way we’ve seen in other instances like the Facebook-Instagram deal for one.
Nokia will get to retain its Chennai plant in India owing to it being declared a frozen asset over tax issues. Additionally, its Masan production facility in Korea will also stay out of Microsoft’s grasp. The two plants will be shut down, though there are plans to support employees with financial and other assistance as they look for opportunities in other companies.
This is how Microsoft managed to lay its hands on Nokia:
In a story most intriguing, Stephen Elop left a top seat at Microsoft in 2010, only to be snapped up as Nokia CEO in 2011 and also was awarded a $6 million signing bonus. It was the first time a non-Finnish person was given this position; nothing fishy so far. Just Wiki it and you’ll see how the annual revenues of the company in which he was given this top position started doing a free-fall.
Things kept getting worse even after the brand adopted Windows Phone for its Lumia phones in an attempt to stem the flow and hopefully revive its handset business. This kept up until 2013 last year, when Nokia finally gave up and announced that it was selling part of its arm. Well, the deal has finally been closed and Elop’s reward for delivering the business to Microsoft on a plate is his present position as the company’s head of Devices and Studios.
As for Nokia, Indian-born Rajeev Suri is tipped to become the CEO of whatever Microsoft hasn’t laid hands on through the acquisition deal. This will include the data networking and telecommunications equipment bit of the Finnish company that we know by the name Nokia Solutions and Networks.