Microsoft To Sell Its Feature Phone Business To FIH Mobile And HMD Global

Microsoft Corp. has announced that it has reached an agreement to sell the company’s entry – level feature phone assets to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxcon Technology Group and HMD Global. Oy for $350 million. As per the deal, FIH Mobile Ltd. will also acquire Microsoft Mobile Vietnam - the company’s Hanoi, Vietnam, manufacturing facility. Upon close of the deal, approximately 4,500 employees will transfer to or they will have the opportunity to join FIH Mobile Ltd or HMD Global, Oy, subject to compliance with local law.
 
Microsoft will continue to develop Windows 10 Mobile and also provide support for Lumia phones, like Lumia 650, Lumia 950 and Lumia 950 XL, and also phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.
 
As per the deal, Microsoft will transfer substantially all its feature phone assets, which goes on to include brands, software and services, care network and other assets, such as customer contracts, critical supply agreements, which are subject to compliance with local laws. The company states that the transaction is expected to close in the second half of 2016, subject to regulatory approvals and other closing conditions.
 
As stated,
 
“Microsoft is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.”