We just heard that Nokia is buying Alcatel-Lucent in a $16 billion deal and now the company has announced that it is considering selling its HERE maps business.
Nokia has announced that it is reviewing its strategic operations and this may include the company selling its HERE maps.
Espoo, Finland – Nokia today announces that it has initiated a review of strategic options, including a potential divestment, for its HERE business. HERE is a leader in navigation, mapping and location intelligence.
Nokia today also announced a proposed combination with Alcatel-Lucent. The Board of Directors of Nokia believes this is the right moment to assess the position of HERE within the proposed new Nokia business.
The Significance of HERE Maps
HERE Maps has been a significant player in the navigation and mapping industry. Originally developed by Navteq, which Nokia acquired in 2007, HERE Maps has grown to become a robust platform offering detailed maps, real-time traffic updates, and location-based services. The platform is used by a variety of industries, including automotive, logistics, and even public transportation systems. Its high-precision mapping technology is particularly valued in the automotive industry for developing advanced driver-assistance systems (ADAS) and autonomous driving technologies.
The potential sale of HERE Maps could attract a wide range of buyers. Companies in the tech industry, such as Apple, Google, and Microsoft, might be interested in acquiring HERE Maps to bolster their own mapping services. Additionally, automotive companies like BMW, Audi, and Mercedes-Benz, which already use HERE Maps for their in-car navigation systems, could see this as an opportunity to gain more control over the technology.
Strategic Implications for Nokia
The decision to review strategic options for HERE Maps comes at a crucial time for Nokia. The acquisition of Alcatel-Lucent is a significant move that will strengthen Nokia’s position in the telecommunications infrastructure market. By combining their resources, Nokia aims to become a global leader in next-generation network technology, including 5G.
However, integrating Alcatel-Lucent into Nokia’s operations will require substantial resources and focus. Divesting HERE Maps could provide Nokia with the financial flexibility needed to successfully complete the merger and invest in new growth areas. It would also allow Nokia to streamline its operations and concentrate on its core competencies in network infrastructure.
The sale of HERE Maps could also have broader implications for the mapping and navigation industry. If acquired by a tech giant like Google or Apple, HERE Maps could see increased investment and development, potentially leading to more advanced and integrated mapping solutions. On the other hand, if acquired by an automotive consortium, it could accelerate the development of autonomous driving technologies.
It will be interesting to see which company is interested in buying Nokia’s HERE maps software. As soon as we get some more information, we will let you guys know.
Source Nokia
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