Microsoft acquired Nokia’s devices and services businesses a while ago. While the deal is still to met regulatory approval in Asia, reports have it that the division, previously called Nokia Oyj, will soon be rebranded as Microsoft Mobile Oy.
The acquisition isn’t all that surprising given that Microsoft and Nokia have been working together for many years now. Today’s Nokia is nothing without the Windows Phone platform. On the same note, Microsoft drives a huge portion of Windows Phone success and sales through Nokia’s Lumia handsets. So both companies had come to depend on each other in the past few years.
Now that Microsoft has acquired the devices division of Nokia, the company has essentially moved hardware-end development in-house. This gives Microsoft the advantage of dictating the future iterations of Windows Phone hardware, in sync with the software-end development of the platform.
The acquisition deal is in the final stages and soon, Microsoft will officially own the said Nokia division. Interestingly, a letter has been sent out to Nokia suppliers, telling them that the division will soon be renamed. According to this letter, ‘Please note that upon the close of the transaction between Microsoft and Nokia, the name of Nokia Corporation/Nokia Oyj will change to Microsoft Mobile Oy.’
The letter further informs the suppliers that despite a change of reins at the company, the terms and conditions of their contract with Nokia will continue to remain the same. The $7.2 billion deal has been seen by many as a wise move by Nokia which has floundered in its fortunes since its glory days a few years ago.