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Nokia CEO: HERE negotiations at an advanced stage. POV: Why sell HERE??

HERE Maps demoWhile Nokia management boasted of strong HERE Q2 results during its Earnings call with investors, it did not revealing anything about its fate in wake of ongoing “strategical review“. While there have been many rumors about the Consortium of German Car-makers about to snatch HERE, it has not materialized yet. But now a confirmation comes from the man himself. Nokia CEO Suri has confirmed that negotiations have reached a relatively advanced stage.

Suri declined to comment on the report.

“The negotiations are at a relatively advanced stages. All agreements include various details that will be mulled over until the very last minute. That is nothing out of the ordinary, but I cannot go into details,” he said.

POV:

This is bit sad for Nokia fans to see HERE going away, especially at a time, when Nokia is venturing into new Business areas like Digital Media & Digital Health. HERE could prove to be a great asset for the connected future Nokia is dreaming of. And the latest quarter results show that it is a self-sustaining and rather profitable business. The car-makers are trying to lap-up HERE to make sure that they get best location solution for self-driving / connected future cars. Not sure why Nokia don’t want to have a say there??

Source

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Nayan

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long.

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  • Prasenjit Singh Bist

    Nokia is selling Here because it has no strategic business case for Here maps. With mere supplier of maps and Here’s business model they will be mere supplier of high quality map but never a competitor to Apple CarPlay or Android Auto, They are not simply targeting those spheres. More over the Nokia in future is concentrating on Android OS and Brand licensing on a lot smaller scale they are not targeting the 70 million + or 100 million plus volumes with 15-20 models as in the past. We may see 2-3 Nokia handsets everywhere with very high end designs and components and that may peak at 20-25 million units on a very conservative scale.

    The main business of new Nokia’s consumer face is Digital Media and Health that is their main focus and then Networks is the core of their current business. Given all these Nokia has no place for Here. THey could choose to keep a minority stake as they did with Vertu and sell it. The mapping business is already a dead weight with a huge amortization and depreciation to it. Nokia under OPK and Anssi Vanjoki bought it for 8 BEUR and they never made a profit of it now if they get 3-4 BEUR it’s a good riddance. I believe they will keep all Navteq patents as well as the app developers who worked on iOS and Android I am very sure of that except that everything will be sold out because everything else is about smart and connected driving.

    The products people have either left Here or moved to Nokia Technologies, there is already site consolidations going on and now Rajeev Suri announced the advanced stages of an agreement so byee byee Here have a great future 🙂

    • Wean Irdeh

      Seems Nokia is trying hard to keep Desti for AI and Medio for analytics in Nokia, but the consortium wants it too 😉

      • Prasenjit Singh Bist

        No Desti IP will be with Nokia technologies that will be integrated with upcoming products UX and has a lot of AI related components in development in it’s UX framework. I am not sure i am writing based on hear say. Patents are of course a point of contention related to mapping and Nokia will keep them with the car makers having access to some. But Nokia gets to keep all the patents and IP work that is very much sure.

      • Prasenjit Singh Bist

        Nokia keeps the patents, don’t know explicitly what will happen to Desti and Medio. But have heard AI components in Nokia UX framework and components may be based on desti acquisition or in house R&D.

        cool thing is Nokia off loaded a business that never made any sense and agitated so many people when after acquiring for 8 BEUR in 2007 they started giving maps for free and that created no value to Nokia. At least they recouped some investment. Great news for car makers they just secured their future from the clutched of evil Apple and Google. And finally the relief that no Here employee looses job like the massacre at Devices business. So every one wins, hope we the customers win too with amazing and accurate maps and innovations in near and long term future.

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