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. Also Read - Nokia Clarity, Comfort, Micro, Go Earbuds Series with ANC launched: Price, features
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. Also Read - Nokia C30 budget phone launched with price under Rs 10,000: Check specs, price
“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. Also Read - Nokia XR20 rugged 5G phone launched: Check specs, price, India launch details
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.