Nokia is looking to sell its HERE maps business, has approached Uber for possible buyout: Report
In a new development, Nokia is now looking to sell its HERE maps business unit. Reuters reports
that the company has hired a financial adviser, as it does not see much
synergy in its map business after the sale its handset unit.
Nokia is looking to focus on its wireless network business, which amounts to 90 percent of revenue for the company and improving its debt rating. The current valuation of the map business is at about €2 billion. Bloomberg reports that HERE made full-year sales of €970 million and an operating loss of €1.24 billion, including a goodwill impairment of €1.21 billion. Nokia had bought Navteq for €5.7 billion in 2007.
“We have estimated that HERE’s value is around €3.3-4.8 billion, and in a possible deal the price should be more than that,” Inderes Equity Research said on its Twitter account.
Nokia is reported to have approached cab service company Uber and other private equity firms. A group of German carmakers have also shown interest. Bids for the HERE maps unit are expected to come in by the end of April.
If the sale goes through, Nokia will look to grow its network business, and even consider buying rival company Alcatel-Lucent SA. The HERE maps business currently provides services to Amazon, Microsoft, Yahoo and several car-navigation systems.
After the sale of its handset unit, Nokia has three businesses left – the map business, the network business and an R&D unit which licenses all its patents.
Nokia is looking to focus on its wireless network business, which amounts to 90 percent of revenue for the company and improving its debt rating. The current valuation of the map business is at about €2 billion. Bloomberg reports that HERE made full-year sales of €970 million and an operating loss of €1.24 billion, including a goodwill impairment of €1.21 billion. Nokia had bought Navteq for €5.7 billion in 2007.
“We have estimated that HERE’s value is around €3.3-4.8 billion, and in a possible deal the price should be more than that,” Inderes Equity Research said on its Twitter account.
Nokia is reported to have approached cab service company Uber and other private equity firms. A group of German carmakers have also shown interest. Bids for the HERE maps unit are expected to come in by the end of April.
If the sale goes through, Nokia will look to grow its network business, and even consider buying rival company Alcatel-Lucent SA. The HERE maps business currently provides services to Amazon, Microsoft, Yahoo and several car-navigation systems.
After the sale of its handset unit, Nokia has three businesses left – the map business, the network business and an R&D unit which licenses all its patents.
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