We reported over the weekend that Nokia plans to sell its HERE subsidiary in order to completely focus on its wireless-network business.
After having sold its mobile division to Microsoft, the Finnish company was left with only three businesses: Nokia Networks, HERE, and Nokia Technologies.
However, Nokia Networks brings 90% of the company's profits, so we can't really blame the Finnish company for wanting to get rid of the less profitable businesses.
The first to go will be HERE, Nokia's maps branch, which will be sold to the higher bidder sometime this month.
The Finnish company has already approached companies like Uber Technologies, equity firms, and even a well-known group of German car manufacturers that might be interested in the acquisition.
According to sources close to the matter, Nokia won't sell HERE if the bids don't offer a certain amount. Currently, Nokia values its maps business at around $2.1 billion (?2 billion), so the bids should be in that range for the Finnish company to accept the offer.
Analysts claim that Nokia wants to acquire Alcatel-Lucent with the money they get for the HERE maps business so that they can better compete with Ericsson AB.
Now Bloomberg reports that Nokia is already in advanced negotiations to acquire part of Alcatel-Lucent. An official announcement may be issued as early as this week.
It appears that Nokia will have to do with Alcatel's wireless unit rather than the company's whole business. However, since the discussions are still underway, the outcome is unknown, which means that there might be no acquisition after all.
The purchase of Alcatel's wireless unit is meant to increase Nokia's position in China, one of the biggest markets in the world, but it may also qualify the Finnish company to take some contracts with two major US-based carriers such as Verizon and AT&T.