Nokia to Return to Cellphones Via Licensing Pact -- Update
May 18 2016 - 8:45AM
Dow Jones News
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
(END) Dow Jones Newswires
May 18, 2016 08:30 ET (12:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Nokia (NYSE:NOK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nokia (NYSE:NOK)
Historical Stock Chart
From Apr 2023 to Apr 2024