Nokia is reported that the company has sold HERE mapping service for a figure of $3.07 billion USD to German auto consortium which consists of Audi AG, BMW Group as well as Daimler AG. The deal is expected to finalize in the first quarter of 2016 with profit of about $2.75 Billion.
One of the reasons that can be concluded on why the automakers are willing to purchase the service as such a huge amount is that they are expected to use the data generated from it for the cars that they are developing so that the cars can navigate themselves based on the data. The mapping service also expected to be available across multiple platforms.
With the deal went through successfully, Nokia is expected to concentrate on the bought over of Alcatel-Lucent which after this is finalized, it will make Nokia a world leading network technology and services business as well as licensing and innovation of Nokia Technologies as mentioned by Rajeev Suri, President and Chief Executive Officer of Nokia.
HERE is reported to receive about $606 million USD and had an operating profit of $30.7 million USD during the first half of 2015. This is definitely is a good news as the service suffered a loss in 2014. According to the last year’s report, the service received about $1.07 billion USD and written off certain things out of goodwill which cost about $1.33 billion USD and thus the company made an operating loss of $1.36 billion.
Moving forward, Nokia is expected to design and license smartphones in 2016 as per the agreement with Microsoft.
Nokia HERE Mapping Service Sold for $3.07 Billion to German Auto Consortium