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Nokia to Return to Cellphones Via Licensing Pact

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David Harrison
May 18, 2016 08:15

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.

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 €5.4 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.

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David Harrison
May 18, 2016 08:15
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