Microsoft Corporation (NASDAQ:MSFT) proves to be a tough nut for Nokia
Looks like there was nothing “soft” in Microsoft Corporation (NASDAQ:MSFT)’s Nokia buy-out deal. Now that Nokia has agreed to sell its handset-business to the former, it has given up its right to license its Nokia brand. The brand can no longer be used to sell mobile devices. Apart from this, the Nokia brand cannot feature on its own mobile devices either, for a certain period of time.
In a recent filing, Nokia said that the software giant had agreed to a ten-year license arrangement with the Finnish handset maker to use the Nokia brand on the mobile phones that are and will be developed on the Series-40 and Series-30 OS’s. As per the agreement, Nokia will only be left with its location, telecom equipment and its patent-development business and will be able to maintain the Nokia brand only for a certain time-frame.
Stakeholder approval pending
Microsoft Corporation (NASDAQ:MSFT) will be buying-out Nokia in a $7.2B deal. This deal still needs to receive Nokia stakeholder approval in a meeting that is to be held on 19 November 2013. In the event that the shareholders disapprove this deal, the Finnish handset maker will be liable to pay Microsoft Corporation (NASDAQ:MSFT) approximately $51m in damages.
In Friday’s trading, Microsoft Corporation (NASDAQ:MSFT) stock dipped 2.52%. The opening price of the shares was $33.41 which climbed to an intraday high of $33.48 and dipped to close at $32.79. Approximately 102.90 million shares exchanged hands on Friday. An average volume of 60.91 million shares were traded over a 30 day period.
The 52-week low of Microsoft Corporation (NASDAQ:MSFT) shares is $26.26 while the 52-week high is $36.43. The company has a market capitalization of $273.15 billion. Microsoft Corporation (NASDAQ:MSFT) is a company that develops, licenses and supports a variety of software services and products.