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POV: Was the MS CEO role for Elop a condition for acquisition. Nokia can’t use Nokia brand on phones till end of 2015.

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Image credit: IBNlive

The real story behind MS acquiring Nokia’s Devices division seems to unravel itself. Earlier when it was reported that MS and Nokia were in talks and Nokia supposedly refused the deal, it seemed far-fetched, but now when Ballmer has decided to step down as MS CEO the deal has sailed swiftly. Elop has been cited as one of the leading contenders for MS CEO post and now it seems the post on which he will join MS may be temporary leading finally to the CEO role. It is not difficult to see who has been major beneficiary of the deal.

  • Elop has everything to gain being destined to become MS CEO
  • The deal price has been quoted to inappropriately low by many and MS is a big beneficiary here.
  • MS will license Nokia brand for 10 years, but will use Nokia brand for only S30 and S40 phones. Nokia will own “Nokia Band” but can’t use it on any of its own mobile phone till 2015
Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand.  Under the terms of the transaction, Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 operating systems.  Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015. –
This actually gives some hope to Nokia again showing intention of venturing into mobile device in 2016, but that may seem far-fetched. For, now it seems the real beneficiary has used Nokia as a ticket to his possible MS CEO role in this acquisition.
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Nayan
Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]
http://www.nokiapoweruser.com
  • Tremerin D’souza

    I am really sad,I will surely stop using MS branded Nokia phones.Was planning to buy NL 520 saving money for it from last 4 months,but now I am shocked and sad at demise of beloved Nokia,I wish if some Indian company purchase it(eg.TATA).I hate Microsoft,but love you Nokia till eternity.

    Interesting fact LAST NOKIA SYMBIAN PHONE=NOKIA 808 & LAST NOKIA SMARTPHONE :LUMIA 1020 both 41mp monsters.

    • Kamal Mishra

      There are more Nokia Lumia coming. Deal will be finalized by early next year only.

  • peterfrank

    now the whole nokia devices and services belongs to microsoft they will use nokia for the next ten years.. soo what do the other parts of nokia they should just buy Jolla for 100mio and they have an a new OS and new Device Teams with money to support…

  • JJH

    Decisions like this are not made by CEO.
    It was made by Nokia board of directors for the benefit of shareholders.
    Nokia stock up +40% pretty much proofs this.

    • Kamal Mishra

      At a time when it was coming back strongly….

      • TS

        Worst case scenario for Nokia

  • @Kamal

    What would you say for a possibility of Nokia joining with their favorite Jolla team and start creating phones from a new level?
    That’s too much into future, but the Nokia dept in Espoo would surely be thinking of something.

    And Elop, I’d say he really did everything willingly to undervalue the company and sell Nokia for so cheap. Tomi Ahonen really had a good insight. I wonder how the Finland govt gave the opportunity to Msft to do this :O

    • Kamal Mishra

      Personally, I will love that option. In that case they don’t need to wait for even Nokia brand to be available for them till 2015. Only thing is only feasible way to get some traction soon is if they use Android and release some phones soon.

    • peterfrank

      That would be the best way! they could release phones in 2014. AND THE Biggest obstacle of all Non Android User is that Sailfish can run must of the Apps!!
      But i hope they will produce beautfiuler designed phones than the Jolla Phone!
      Is Nokia Services and Devices included Nokia Research and Development?

    • theflew

      Let’s get real – Jolla isn’t going anywhere. If BB can’t get off the ground, Firefox, Ubuntu mobile, WP is just starting to see the light of day. How in the hell is Jolla going anywhere? If anything Jolla might be a breeder for new technologies and interfaces used in WP, Android, etc…

  • Niss

    Kamal Mishra explain in simple is that nokia lumia phones in future will be branded as nokia lumia or microsoft windows phone?

    • Kamal Mishra

      As per the contract terms perhaps simply “Lumia”.

      • Yeah.. Seems it will be like Micosoft Lumia? Butt Sadly this doesn’t feel that great.

        Nokia has the patents, has everything. I hope they come up again in 2016, but it will be too hard to start from Zero and then what all can Nokia produce? No feature phones coz then there will be a conflict between Nokia and Microsoft feature phones having the same name. Probably this marks the end of Asha phones. Msft will no longer be willing to prepare these.

        In any case the deal has been super stupid. Nokia’s name will be ruined by Microsoft. I’d have liked if Nokia just handed over the Lumia part and every person concerned to Lumia to Msft and kept the feature phone thing. Don’t know how the future will be 🙁

        Elop really wants money. No care for the peoples’ emotions and love for Nokia 🙁

        • troll

          Lets remember though that for the past two years NSN has been saving Nokia’s butt. As much as we love Nokia devices, they have been losing money in a harder battle to fight phone business. Look at the homegrown India and Chinese companies with a growing market share. I will miss Nokia phones but this may save Nokia Finland through its license deals and NSN growth or Nokia Solutions. Perhaps now instead of phones we can open the patents up and find the next big thing to produce at a profit, very little else was making much money. Hopefully the Natural gas and Oil business.

          • I’d agree 100%. Still it would be hard to forget the name Nokia when we talk about mobiles. I hope there’s a scope of #return 🙂

          • TS

            Considering the Android scenario – maybe Elop was the Trojan Horse, they say.

            2011 Nokia was still one of the main smartphone player with 30%+ market share.

          • Jeff

            Exactly my thoughts. As an investor we now have a profitable company instantly. 100% ownership in NSN means equal revenues with half the expenses. I still see Nokia’s price rising into the $6 range come earnings.

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