Nokia sells HERE Maps to Audi, BMW and Daimler AG for €2.8 billion

Nokia has finally reached an agreement with the ‘Consortium’ of Audi, BMW and Daimler AG to sell its HERE Maps division for €2.8 billion. Rajeev Suri, President and Chief Executive Officer of Nokia, said:

“With this step we complete the latest stage of Nokia’s transformation. We integrated the former Nokia Siemens Networks, divested our Devices & Services business, and have now reached agreement on a transaction for HERE that we believe is the best path forward for our shareholders, as well as the customers and employees of HERE. Going forward, we will focus on our planned combination with Alcatel-Lucent. Once that is complete, Nokia will be a renewed company, with a world-leading network technology and services business, as well as the licensing and innovation engine of Nokia Technologies.”

Nokia is doing this to streamline it business before its planned merger with Alcatel-Lucent next year and now consists of Nokia Networks and Nokia Technologies.

Personally my concern about the sale of HERE Maps is that there are now three big egos looking after the company, they all want the best possible maps in their cars. Do they really want people to still have access to HERE Maps on their smartphones rather than paying for the expensive Sat-Nav upgrade when they buy their next car, I don’t think so.

For now HERE Maps is safe, however in the next couple of years expect to start seeing some cracks emerging in the ‘Consortium’ and potentially the HERE app.

Source

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