Microsoft sells its Nokia brand
An event that most people thought impossible has just occurred – Microsoft, which acquired the famous Nokia brand a few years ago, has sold this same brand to the Chinese smartphone manufacturer Foxconn.
The purchase of Nokia by Microsoft was widely publicized in late 2013 when the US software giant purchased the Finnish telecommunications company for USD 7 billion but nearly three years later Microsoft has not scored any successes with the Nokia brand, so this is likely the reason why the US software company gets rid of it. So, starting now Foxconn has become the owner of Microsoft’s smartphone business as well as of the Nokia brand. The sale price is around USD 350 million, which is peanuts compared to the 7 billion dollars Microsoft paid 2.5 years ago. In addition to this Foxconn acquires the Microsoft Mobile Vietnam factory, which manufactures smartphones. The 4500 people who work there will not be laid off – instead they will work for Foxconn. The deal is to be officially finished in H2 2016.
Foxconn promises it will invest 500 million US dollars in the Nokia brand in the next three years so the famous brand may be back with fanfares in the near future. Only time will tell, though.