Nokia, Microsoft complete $7.5B cellphone deal - 13 WTHR Indianapolis

Nokia, Microsoft complete $7.5B cellphone deal

Updated:
HELSINKI - Nokia says it has completed the 5.44 billion-euro ($7.5 billion) sale of its troubled cellphone and services division to Microsoft, ending a chapter in the former world leading cellphone maker's history that began with paper making in 1865.

The Friday closure of the deal, which includes a license to a portfolio of Nokia patents to Microsoft Corp., follows delays in global regulatory approvals and ends the production of mobile phones by the Finnish company, which had led the field for more than a decade, peaking with a 40-percent global market share in 2008.

Nokia said the total transaction price would be "slightly higher" than when it was originally announced on Sept. 3 because of adjustments made for net working capital and cash earnings. The deal was to have closed during the first quarter but was held up because of delays in approvals, including from China.

The former mobile leader, which had also provided a significant boost to the Finnish economy, gradually lost its grip on the market as it failed to meet the smartphone challenge of Apple's iPhone, Google Inc.'s Android operating system and cheaper competitors in Asia.

Nokia will now focus on networks, mapping services and technology development and licenses, saying it will give more details of the deal and future plans when it releases first-quarter earnings on April 29 - the last report to include the ailing devices and services division. It is also expected to name the new Nokia CEO.

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