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phil
April 22nd, 2014 at 7:08 am
Microsoft-Nokia deal closing on Friday; terms slightly adjusted
Yesterday, 10:40 AM ET · MSFT
• Microsoft’s (MSFT -0.5%) acquisition of Nokia’s (NOK -0.1%) Devices & Services unit will close on April 25.
• Three changes have been made to the original deal: 1) Microsoft won’t acquire Nokia’s Korean manufacturing facility. 2) Microsoft will “manage” Nokia.com and Nokia social media sites for up to a year. 3) 21 Chinese employees of Nokia’s Chief Technology Office will join Microsoft.
• Chinese government approval (provided two weeks ago) ended the last major regulatory hurdle for the deal, which was originally set to close in March. Nokia stands to reap a $7.5B cash windfall that it might direct towards a mixture of acquisitions – the company has said it’s focusing on smaller deals – and capital returns.
• Microsoft, meanwhile, will have to get to work on turning around a business that posted a 29% Y/Y sales drop and a -7.3% non-IFRS op. margin in Q4, in large part due to plunging feature phone sales.
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