In its serious ambition to establish a stronghold in the navigation industry and increase its revenue potential, nokia is interested to acquire digital map supplier Navteq. If all goes well, this will be the largest ever takeover of Nokia for a value of about $7.6 billion.
"Buying Navteq would be in line with Nokia's plans. Navteq's position is pretty strong. Navigation markets are just starting up," said OKO Bank analyst Hannu Rauhala to Reuters.
Conversely, Bloomberg reports that shares of Nokia fell by about 1 percent with this recent development because investors think the acquisition cost is too expensive.
October 1st, 2007 at 6:38 am
This is smart move of Nokia as more and more headsets are now equipped with GPS functions. Other headset manufacturers who want to put GPS on their phones might have to license navteq’s technology.