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. –