Nokia is said to be taking offers to sell HERE Maps, and some of the contenders to purchase the mapping business include Microsoft and Apple.
Nokia wants out of the mapping business. While the company had spent the last several months rebuilding their mapping service, it would appear as though it was being done to drive up potential interesting and revenue drawing from a sale that would be taking place in the near future. The company was reported by Bloomberg to be seeking a deal that would unload the mapping service called, “HERE Maps” off to another company.
The business, which struggled initially, after a series of poor rollouts and updates, was taken off of iOS entirely more than a year ago. Then, after going back to the drawing board the company was able to re-launch the iOS version of HERE Maps.
There are a lot of potential directions that this could go. However, it would appear as though the chief cause for Nokia to be doing this is to focus exclusively on their network business. Which would be big for the company to improve their standing economically. It would improve their debt situation, and also eliminate the fear that some investors have when it comes to the future of Nokia as a whole. It would be a big move for the company, if they were able to sell it to another tech company; especially if the sale went as well as Nokia’s sale of their smartphone business to Microsoft.
While there have been theories spinning around since the news broke that the company might be working toward a deal with a number of private equity firms, the broader notion would be that a company like Microsoft (NASDAQ:MSFT) or Apple (NASDAQ:AAPL) could be poised to make a purchase for HERE Maps. In fact, that scenario earns its credibility from the fact that Apple’s mapping app is relatively terrible, according to most users. So, this would be a great opportunity for them to improve their mapping platform. Now, similarly Microsoft has been going through a period of time where they have been purchasing anything, and everything they can make their overall product better. This would fit right into their purchasing scheme and would make sense given their cross-platform, productivity-based push.
That being said, it would make sense for either Apple or Microsoft to pick this up. However, with as much information as exists out there on the matter – it isn’t entirely clear who might be a frontrunner to gain this big-ticket item. It would certainly perform well for any company who did make that purchase since it is so developed already. It would also be very easy to rebrand as both companies have a ton of experience in handling those types of scenarios.