Feature Article

April 23, 2014

Microsoft Planning to Rebrand Nokia Phones as 'Microsoft Mobile'

Microsoft has been in talks with Nokia to purchase its handset business since September, and despite delays in regulatory approval from Asian officials, the deal is set to close on Friday. Microsoft plans on using Nokia's resources to expand the capabilities and performance of their Windows Phones, as well as installing the Windows Mobile Operating System onto Nokia devices. Once Nokia is purchased by Microsoft, the company plans on renaming the phone division Microsoft Mobile.

While there has been no official announcement from either company that this would be the official name, a leaked letter from Microsoft to their suppliers read the following:

“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. Microsoft Mobile Oy is the legal entity name that should be used for VAT Ids and for the issuance of invoices.”

Oyj is the Finnish equivalent title for a “public stock company,” yet the transformation to Oy is more akin to an Ltd/Corporation. The renamed Microsoft Mobile division is expected to stay in Finland where it will remain a wholly-owned Microsoft subsidiary, yet it's believed that the address will move from Nokia's Keilalahdentie HQ to Keilaranta in Espoo.

Microsoft purchased Nokia's handset division for $7.2 billion and although the deal is about to close, there is not expected to be any effect on Nokia's business partners. The leaked memo stated that Microsoft would be taking over Nokia's obligations to suppliers, customers and partners, allowing business to continue as normal. Reportedly, the leaked message ends by stating that “the purpose of this letter is to update you that the current terms and conditions that you have with the Devices and Services business will not change.”

Edited by Maurice Nagle

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