Published on : Apr 23, 2014
The Microsoft-Nokia deal that made headlines when it was announced is finally on its way to being completed. This proves that even the most complex deals do culminate with time. This week, Microsoft announced that it would complete the purchase of a major part of Nokia’s hardware assets by Friday. The much discussed deal-though on the brink of completion-has witnessed some adjustments and changes since it was initially formulated in 2013.
According to initial estimates by sources close to the deal, it was expected that purchases would be completed by 2014’s first quarter. But the deal was delayed because of international regulations and it took the companies some time to resolve these issues. This was the main reason for the completion of the deal being pushed forward into the current quarter. In an earlier announcement, the companies had said that they would try to close the much touted deal by the end of April 2014, and it looks like the mission will be accomplished in the scheduled timeframe and the target will be met.
However, those in the know have also commented on certain factors that brought about certain changes in the deal as the conclusion date of the deal approached. For instance, Microsoft said that it would not purchase a factory that Nokia operates in Korea. Besides this, 21 employees of Nokia, that were not initially a part of the agreement, will now work for Microsoft.
Moreover, it has also emerged that the company’s headquarters in Redmond will be responsible for the management of the nokia.com domain, as well as the social media sites for the period of a year-this, the companies say is for the benefit of both companies and their customers.
But, when one zooms out and looks at the larger picture, these adjustments can be best described as ‘minor’ in a mega USD 7.2 billion deal wherein tens of thousands of Nokia employees will now work for Microsoft.
It now remains to be seen how Microsoft capitalizes on this mega deal.