Microsoft Buys Nokia For $7bn

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Microsoft has moved on to finally engage its partner into a holy matrimonial atleast for  the next 10 years  as Microsoft has agreed in their licensing agreement, while they move to gain more control with a mobile phone manufacturer they have been working with for years now.

According to TechCrunch, “Microsoft will take over Nokia’s Devices and Services business, which includes both Smart Devices and Mobile Devices. In other words: The Lumia, Asha and X series are now all under Microsoft’s umbrella. Design teams, supply chain, accessories, employees, developer relations and most of Nokia’s manufacturing plants and testing facilities are also on Microsoft’s side, as are most of the company’s services like MixRadio, Store and more.

 

Here, Nokia’s mapping entity, is considered a separate business and isn’t included as part of the deal, but Microsoft has agreed to a 10-year licensing agreement. (Additionally, Nokia also retains its Solutions and Networks division, its CTO office and a large number of patents.)”

 

The real worries are how will some investors react and what will happen to the X phones, which are all running on the Google`s competitor android operator system.

Techcrunch also added that Microsoft will also control IP agreements and any third-party contracts related to Nokia’s devices. Symbian should fit in this category, as well as any partnerships Nokia had with Qualcomm and other silicon companies. And in case you were wondering, the company’s imaging talent will make the switch over to Microsoft as well.

Nokia-Lumia-800-005

Since Microsoft retains rights to the Lumia and Asha brand names, the company will take advantage of them for the time being. Anything Nokia had in the pipeline will likely still come out in the next several months (unless Microsoft decides to veto certain products). A true Microsoft phone probably won’t be seen for at least 10 months, since it usually takes a long time to push a device through the development process.

While Microsoft says it will continue to support Nokia’s entire portfolio, will it eventually drop the X because it runs on Google’s mobile OS? Will Lumia phones get Windows Phone updates before everyone else, or will the company treat all of its partners fairly? We still have plenty of questions, and now that Nokia’s device division is part of “One Microsoft,” the company can finally start answering them.

 

 

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