Microsoft selling feature phone business
HMD global Founded to Create New Generation of Nokia-branded Mobile Phones and Tablets
May 18, 2016 — Microsoft Corp. on Wednesday announced it reached an agreement to sell the company’s entry-level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and HMD Global, Oy for $350 million. As part of the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam — the company’s Hanoi, Vietnam, manufacturing facility. Upon close of this deal, approximately 4,500 employees will transfer to, or have the opportunity to join, FIH Mobile Ltd. or HMD Global, Oy, subject to compliance with local law.
Microsoft will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.
As part of the deal, Microsoft will transfer substantially all of its feature phone assets, including brands, software and services, care network and other assets, customer contracts, and critical supply agreements, subject to compliance with local law. The transaction is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions.
HMD has signed a strategic licensing agreement with Nokia Technologies, the advanced technology and licensing unit of Nokia Corporation, giving HMD sole use of the Nokia brand on mobile phones and tablets worldwide for the next decade, and cellular standard essential patent licenses...HMD has conditionally agreed to acquire from Microsoft the rights to use the "Nokia" trademark on feature phones until 2024, and design rights relating to Microsoft's Feature Phone Business...Together, these agreements will make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets...HMD plans for its future Nokia-branded smartphones and tablets to run on the Android operating system...
Nokia signs strategic brand and intellectual property licensing agreement
About HMD global
Registered and headquartered in Helsinki, Finland, HMD is a new private venture founded to create a new generation of Nokia-branded mobile devices. HMD will be run by a group of experienced industry leaders, including CEO-designate Arto Nummela, who previously held senior roles at Nokia and is currently the head of Microsoft's Mobile Devices business for Greater Asia, Middle East and Africa as well as Microsoft's global Feature Phones business, and president-designate Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, and previously held key roles at Nokia, HTC and other global brands.
Last edited by Dr.Dave; 2016-05-19 at 01:07 PM.
Reason: Added more detail