Nokia is trying to streamline its portfolio as it now is about to sell HERE maps – its maps business. The Finnish company already made the big deal after it splits its main Mobile unit and sell it to Microsoft.
The candidates for HERE maps
Now according to the latest report from Bloomberg, Nokia is exploring the possibility to chop out another chunk from its former tech group. The European company has reached potential buyers for its mapping business, one of it is Uber – the mobile car booking service and some private equity firms.
The possible reason for this efforts to sell HERE maps for Nokia are that it management wants to focus more on the next wireless technologies and mobile infrastructure.
After the Microsoft deal, Nokia’s main business shifts from smartphone making to wireless and mobile equipment. Also the renewed Finnish company retain its HERE maps unit, as well the R&D laboratories. HERE is very handy mapping service and it is one of the first to offer offline GPS navigation on the smartphone.
According to the Microsoft deal, the software giant still can use HERE maps in its Lumia devices. And for while it was one of the best features for Windows Phone devices made by the company from Redmond. But in the last few quarters Nokia starts to open its HERE service to other platforms. Already there is an application for iOS and Android.
But the Finnish company struggles to monetize its mapping service. Now HERE is valued up to 2 billion euros, which is four time less than 8.1 billion euros which Nokia paid for to buy map provider Navteq Corp in 2008.
This may be the reason why the company is exploring the idea of the potential sell of HERE maps. For Uber this service will in handy. It will be a good base for one of the most valuable start-ups at the moment. Maps and navigation is crucial for the popular car-booking application.
There is another plausibility why Nokia is exploring for potential buyers of HERE maps. The Finnish company is trying for some quarters to clinched a deal for merger with Alcatel-Lucent. The money from its mapping business could be used for boosting the offer. If Nokia acquired Alcatel-Lucent it will have better positions against the leaders in the telecommunications equipment manufacturers like Ericsson and Huawei.
Nokia confirmed the rumors that is in very advanced talks for merging with Alcatel-Lucent. This place the idea of spinning off and sell HERE maps even more plausible if the Finnish company wants to offer more cash for the potential deal.
Image Credit: Nokia