Why do the German auto giants love the map of Nokia Here?
According to foreign media reports, after a long wait, Nokia finally confirmed on Tuesday that the map of Here will be sold to Germany's three major automakers Audi, BMW and Daimler at a price of $3.07 billion.
This is the third major acquisition involving Nokia in the past 15 months. The Finnish tech giant first sold the mobile phone division to Microsoft for $7 billion, and then acquired Alan for $16.6 billion. After selling the Here map department, Nokia is fully committed to the "Next Generation Network Services" business .
In fact, when the acquisition of Alang, Nokia has made it clear that the Here map has become its redundant department, and intends to sell . This attitude has completely activated everyone's enthusiasm for Nokia's map department. Several companies can be said to be snapping up Nokia's map department. First, Uber locked the deal for $3 billion. Later, some large technology companies also participated in the bidding. Even Facebook sent a willingness to buy in May. But it seems that the German auto giant is the buyer who loves the map of Here, and laughs at the end.
Why is Nokia eager to get rid of the Here map department? Why are the German Big Three so fond of the map of Here? Let's take a look back at the ins and outs of the incident.
Time to return to 14 years ago
Nokia's first digital map business can be traced back to 2001, when Nokia was still the hegemon of the mobile phone world, and its status even exceeded that of today's Apple. At that time, Nokia, who had a lot of cash, participated in the development of 3D maps for the first time. The company that was cooperating at the time was called TellMaris. Later, Nokia directly acquired the underlying software of this 3D map. Then, the Smart2Go mobile app was launched to provide free downloads for Nokia and Windows Mobile devices.
Then in 2007, Nokia spent $8 billion to acquire NAVTEQ. NAVTEQ's main business is to provide digital map data for car navigation systems, mobile phones and other platforms. It was this company that later became the core of Nokia's map business unit. Then Nokia carried out a series of smaller acquisitions and renamed the map business to Ovi in ​​2011. In 2012, Nokia finally renamed the map business to Here. Before and after, Nokia spent no less than tens of billions of dollars on the map business.
Recently, Nokia has promoted its map business to other mobile platforms, providing GPS navigation applications for Android and iOS. However, for many third-party companies, its map business is very attractive, especially for some car navigation car companies.
Largest car map platform
In addition to Google, TomTom and OpenStreetMap, Here is considered to be the most important online map platform in the world. For many, this is a more attractive platform than Google Maps, because Nokia's maps provide complete offline access to countries around the world and are completely free. However, although this is a big selling point for end users, it is not of particular concern to companies that are interested in acquiring.
Nokia has previously licensed its map technology to many large technology companies, including Amazon, Bing, Garmin and Yahoo. In December last year, Nokia reached a licensing agreement with Baidu Maps.
What is of interest to auto giants is that Nokia is a well-deserved leader in car navigation. Nokia's map business accounts for about 80% of the car GPS navigation system market share. Here Map More than half of the $1 billion in revenue in 2014 came from the automotive industry.
The auto giants that acquired the map business have already used Here maps on their cars. So the acquisition of Here maps and navigation technology will give them full control over them. This is not only beneficial for the car development of these companies, but also prevents the software from falling into the Uber-like company and adversely affecting the company. It can also be said to be a defensive acquisition.
For Nokia, the deal is a continuation of the company's integration and restructuring. Nokia is not the Nokia that acquired NAVTEQ eight years ago. Obviously, Here is becoming an increasingly inappropriate presence for Nokia. In addition, according to Nokia's second quarter financial statements, Here's revenue accounted for less than 10%, operating profit was only 27 million euros.
Therefore, on the one hand, Here is an excellent, well-received map platform. But on the other hand, Nokia is moving towards a new future, and there is no Here map in the future. So finding a new owner for Here has become a matter of course. Once the deal is completed in early 2016, Nokia will only have broadband network infrastructure business - Nokia Network and patent licensing business - Nokia Technology.
And in fact, Nokia is planning to re-enter the mobile phone field at some point in the future. With the sale of mobile devices and services, Nokia lost its ability to manufacture and distribute mobile phones. However, Nokia is still a technical expert in the design and manufacture of mobile phones, and will return to the mobile phone field through the brand authorization model in the future.
After the acquisition, Nokia President and CEO said, “Complete this step, we have completed the last part of the transformation of Nokia. We integrated the former Nokia Siemens Networks, divested our equipment and services business, and now completed Here. The transaction agreement, we believe this is the best result for our shareholders, employees and Here customers. Looking ahead, we will focus on our integration with Alcatel-Lucent. Once completed, Nokia will be a reborn company with the world Leading network technology and services business, as well as Nokia's licensing and innovation engine."
Here, the acquisition has not changed much from the user's point of view. However, after being controlled by three automakers, it will theoretically allow other auto companies to abandon the use of this map platform. Of course, these car companies can also join the Big Three. Here's advantage lies in the cars and drivers who use it. Therefore, Audi, BMW and Daimler should not adopt a conservative attitude for the future of Here, and it is likely to become an open platform in the field of car navigation.
In order to "lightly play" Nokia abandoned the map of Here
After selling the mobile phone business to Microsoft and licensing the brand, Nokia has withdrawn from the mobile phone market. However, this former giant has recently appeared on the face, first to spend $16.6 billion to acquire Alcatel-Lucent, to make the whole market a vibrate; later there are rumors that Nokia will return to the mobile phone market in 2016, once disheartened The powder of the noisy turmoil again.
In the latest news, Nokia is selling its Here map business for $3.2 billion. As soon as the news came out, the major technology giants were eager to move, and they all expressed their intention to buy. Potential buyers include Apple, Amazon, Alibaba, Baidu, Facebook and German automakers. According to Nokia's plan, the first round of bidding will be held next weekend.
After Nokia sold the mobile phone business to Microsoft for $7.5 billion, there were only three businesses left: the network department, the map business, and the R&D department responsible for patent licensing. As the map business has been shrinking year after year, Nokia wants to invest in the Herem and Ericsson by selling the Here business and investing all its energy into mobile network equipment and services.
Nokia's related topic - Can Nokia's Nokia come back?
Qualcomm and Nokia Here improve indoor positioning technology
Qualcomm will use Nokia's indoor map to enhance its indoor positioning technology.
Under the agreement, Qualcomm Atheros, a subsidiary of Qualcomm, will use Nokia Here's indoor map data on its IZat indoor positioning platform.
Previously, the Qualcomm IZat platform primarily used mobile networks and WiFi networks to determine the location of the device, and now will increase Nokia's extensive indoor map content. Microsoft's indoor map data is also used by Microsoft Bing Venue Maps.
For a long time, Nokia has been making indoor maps through the map makers of Here and collecting floor plans of buildings. Nokia said it has collected internal map data for more than 50,000 buildings in 69 countries around the world.
According to industry insiders, the combination of the IZat platform and Nokia's indoor maps will provide more accurate indoor positioning services.
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