Nokia may sell HERE mapping business

Dylan Bushell-Embling
14 Apr 2015
00:00

Nokia is reportedly considering selling its HERE mapping business to allow the vendor to focus on networking equipment, and could potentially use the proceeds to pursue a takeover of Alcatel-Lucent.

Nokia has approached potential buyers including Uber Technologies and private equity firms over a sale of the HERE unit, Bloombergreported, citing unnamed sources.

According to the sources, Nokia may choose not to sell if it isn't offered a price it deems sufficient. The first bids for HERE could arrive as early as this month.

HERE has lost significant value since Nokia acquired map provider Navteq in 2008 for $8.1 billion. As of Nokia's most recent financial reports, HERE is currently valued at around €2 billion ($2.12 billion). In 2014 HERE earned revenue of €970 million, but posted an operating loss of €1.24 billion.

The report states that Nokia could use proceeds from a sale for acquisitions to bolster its networking business.

At least one analyst expects that a sale could put Nokia in a stronger position to mount the often-rumored takeover offer for Alcatel-Lucent.

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