Nokia's HERE Maps Sold For $3.2 Billion To Audi, BMW and Daimler

vivaoporto writes: Nokia announced an agreement to sell its HERE digital mapping and location services business to a consortium of leading automotive companies, comprising AUDI AG, BMW Group and Daimler AG (Mercedes brand owner). The transaction values HERE at €2.8 billion ($3.2 billion) with a normalized level of working capital, and is expected to close in the first quarter of 2016, subject to customary closing conditions and regulatory approvals. Once the mapping unit is sold, Nokia will consist of two businesses: Nokia Networks and Nokia Technologies. The first will continue to provide broadband services and infrastructure while the second will work on "advanced technology development and licensing." Reader jppiiroinen notes that Nokia originally acquired digital mapping provider Navteq in 2007 for $8.1 billion. Once it merged with Nokia, it became the foundation of Nokia's HERE unit.

Comments

Good move Nokia

[140Mandak262Jamuna]

The maps business is useless now. Even mighty Apple could not dislodge the king of the hill of the map Google maps. So it was facing an 8.1 billion write off. Somehow managed to dress it up to be sold to the auto giants for 3.2 billion.

The auto giants are in their typical auto giant mentality. "Ha, ha, haa, this chump has plunked down 25, 35 or 45 K to buy our car right? Now we can squeeze him dry. Want a nicely integrated map/system with the car audio and built in screen? That is special-nav package 3200$ for you. And we will stick you up for 200$ a year for map upgrades".

Google on the other hand gives me traffic update that is so granular and so up to date it boggles ones mind how they do it. Google paints the highways yellow, green or red, each section between exits gets independent updates. Last week, there was an accident in a non freeway some three lights ahead of us. The google map clearly showed the backup exactly up to the point, told us there is an accident ahead. It seems to be using some real time data about the number of cell phones passing in and out cell towers to determine the backup. Against this, goes our European wonders who bought Chrysler for 36 billion dollars and then sold it to Fiat for 6 billion dollars!

Google/Android is working towards an integrated auto-infotainment system standard. Apple is muscling in. Once the standards are published by SAE it is curtains for the auto industry selling GPS system at 2000% markup.

Re:Good move Nokia

[GGardner]

I think car manufacturers are less worried about the death of their navigation cash cow than they are terrified about not owning the magic google self-driving autopilot. Having your own map data is one component to the self-driving, or assisted-driving cars.