Nokia may sell HERE mapping business

Dylan Bushell-Embling
14 Apr 2015
Daily News

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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