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Nokia Buys Navteq for $8.1 Billion

Posted by ryuzaki0 on from the better-to-track-you-with-my-dear dept.

mytrip writes to mention that Nokia has agreed to buy Navteq, Chicago-based maker of digital mapping and navigational software, for $8.1 billion. "Nokia's president and chief executive, Olli-Pekka Kallasvuo, said that location-based services were a cornerstone of Nokia's Internet services strategy, which is part of an overall plan to expand beyond the production of cellphones into user services like photos, video, music and games."

3 of 77 comments (clear)

  1. Google Maps et al affected? by trickonion · · Score: 2, Insightful

    I know Google Maps (and I believe others) use data provided by Navteq (so the bottom of the maps say). I wonder if this purchase will affect them in any way?

    --
    I got you an Andes mint, but it melted in my pocket
    1. Re:Google Maps et al affected? by GodfatherofSoul · · Score: 1, Insightful

      I don't know how long Nokia's phone dominance will last. They're licensing fees aren't exactly cheap when you're talking about millions of units and I think the LiMo project is going to kill them assuming it progresses as planned. A standardized, robust, featureful, and cheap mobile Linux OS will eat up even more of Nokia's share. They seem to be taking the brunt of the blow from Linux encroachment into the mobile phone market (no clue why that is).

      --
      I swear to God...I swear to God! That is NOT how you treat your human!
  2. Re:NavTeq made out like bandits here. by theskipper · · Score: 3, Insightful

    Fwiw, a few points for perspective:

    After the Tom-Tom purchase of TeleAtlas, Navteq almost doubled from July (wow!): http://clearstation.etrade.com/cgi-bin/details?Symbol=NVT&csize=10&PositionId=3072161788&Event=peek&period=d.

    You hit a home run because you owned a severely undervalued stock. A real value was applied to their nearest competitor and investors compared their market caps along with a premium. It's standard recognition of price disparity that all investors look for.

    As far as the shareholders go, anyone who bought at the last peak in early '06 (around $51) still managed a gain of over 50%.

    Btw, now is usually a good time to sell and book the gain. There will be a slight discount to the buyout price which represents the risk of the deal falling through. For a percent or two it's usually not worth waiting for the arbitrage to settle out.

    Congratulations on a great trade.