HPNN Nokia to Return to Cellphones Via Licensing P
Post# of 3302
Posted On: 05/24/2016 7:28:52 PM
HPNN Nokia to Return to Cellphones Via Licensing Pact -- Update
Microsoft (NASDAQ:MSFT)
By Matthias Verbergt
Nokia Corp., the Finnish company that once dominated the cellphone industry, will again stick its badge on mobile handsets.
The company, which has refashioned itself into a maker of wireless and Internet network equipment, won't make or sell cellphones and tablets directly. Rather, Nokia said Wednesday that it has entered a series of licensing pacts with Finnish and Asian partners.
Nokia said it has granted patent and design rights to a newly created company based in Finland, HMD Global Oy, which will be in charge of global marketing through a 10-year exclusive agreement. On the manufacturing front, Nokia said it has signed agreements with Foxconn Technology Group, the Taiwanese company and main assembler of Apple Inc's iPhones.
As part of a separate but related transaction, Microsoft said it has agreed to sell Nokia's former entry-level phone business, which it has owned since 2014, to HMD and Foxconn for $350 million. Two years ago, the U.S. company spent EUR5.4 billion ($6.1 billion) to acquire Nokia's wireless device assets.
Nokia said revenue from the entry-level phone operations would help HMD finance a $500 million investment in a global marketing campaign over the next three years.
Wednesday's announcement marks Nokia's second step toward a return to the consumer products arena in weeks. Last month, the company said it planned to buy Withings SA, a French startup that was among the first companies to make Internet-connected devices that track users' health.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
hpnn
Microsoft (NASDAQ:MSFT)
By Matthias Verbergt
Nokia Corp., the Finnish company that once dominated the cellphone industry, will again stick its badge on mobile handsets.
The company, which has refashioned itself into a maker of wireless and Internet network equipment, won't make or sell cellphones and tablets directly. Rather, Nokia said Wednesday that it has entered a series of licensing pacts with Finnish and Asian partners.
Nokia said it has granted patent and design rights to a newly created company based in Finland, HMD Global Oy, which will be in charge of global marketing through a 10-year exclusive agreement. On the manufacturing front, Nokia said it has signed agreements with Foxconn Technology Group, the Taiwanese company and main assembler of Apple Inc's iPhones.
As part of a separate but related transaction, Microsoft said it has agreed to sell Nokia's former entry-level phone business, which it has owned since 2014, to HMD and Foxconn for $350 million. Two years ago, the U.S. company spent EUR5.4 billion ($6.1 billion) to acquire Nokia's wireless device assets.
Nokia said revenue from the entry-level phone operations would help HMD finance a $500 million investment in a global marketing campaign over the next three years.
Wednesday's announcement marks Nokia's second step toward a return to the consumer products arena in weeks. Last month, the company said it planned to buy Withings SA, a French startup that was among the first companies to make Internet-connected devices that track users' health.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
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