“Nokia (NOK) launched a $100 million fund to invest in connected cars, as the mobile equipment maker seeks to capitalize on a growing market,” Matthew Rocco reports for FOXBusiness.
“The Finnish company already offers in-car technology through HERE, its mapping and location unit,” Rocco reports. “Nokia said it plans to make investments in auto tech and local services companies that strengthen HERE’s products.”
“The move comes as Nokia looks to bolster its portfolio following the sale of its handset business to Microsoft. The $7.5 billion deal was completed in April,” Rocco reports. “Shares of Nokia fell two cents to $7.33 in recent trading. The stock is down about 9.6% since the start of 2014.”
Read more in the full article here.
“The fund will be managed by Nokia’s venture arm, Nokia Growth Partners (NGP) — and is the fourth such fund that NGP has managed on behalf of Nokia, bringing the total commitments managed by NGP to $700M,” Natasha Lomas reports for TechCrunch. “NGP’s other funds have been centred on mobile-related investments — a business Nokia has just extricated itself from, divesting itself of its devices & services business division by selling it to Microsoft. That sale brought Nokia $7.2 billion+, a portion of which is now being retargeted by the company with the aim of building an ecosystem around its remaining business divisions.”
“Nokia is a far smaller company without phones — the remaining rump of the business is focused on networking, mapping/location services and leveraging its patent portfolio,” Lomas reports. “Connected cars intersects directly with that digital mapping business, HERE — with Nokia licensing navigation and mapping services to (predominantly) car makers.”
“So this is a clear play to expand the business opportunity for HERE,” Lomas reports. “In its Q1 results reported last month, the division increased its revenue 13% year-on-year, bringing in €185 million in the quarter — and pulling in non-IFRS operating profit of €10 million.”
Read more in the full article here.
MacDailyNews Take:
Apple’s iPhone is a “niche product.” — Nokia’s then-CEO Olli-Pekka Kallasvuo, April 17, 2008
Olli-Pekka is currently “spending time with his family.”
Related articles:
Apple’s next big acquisition should be Nokia’s ‘HERE’ mapping services – March 6, 2014
Nokia pulls moribund HERE Maps from App Store, claims Apple’s iOS 7 changes ‘harm the user experience’ – December 27, 2013
Nokia shareholders approve Microsoft’s $7.2 billion acquisition – November 19, 2013