In Short:
Nokia is looking at options for its mobile networks business, potentially worth around $10 billion. This comes after a 32% profit drop due to low demand for 5G equipment. Samsung has shown interest in acquiring some of Nokia’s assets to boost its telecom capabilities. However, discussions are still early, and no deal is confirmed. Nokia remains focused on its mobile business’s success.
Nokia Explores Options for Mobile Networks Business
Nokia, a leading telecom equipment manufacturer, is currently exploring various options for its mobile networks business. Reports from Bloomberg News have indicated that the company has attracted interest from several potential suitors, including Samsung Electronics.
Divestment and Partnerships Considered
The Finnish telecom giant is reportedly weighing multiple strategies, including the possibility of divesting, selling some or all of its mobile networks business, which could be valued at up to $10 billion. Additionally, Nokia is considering the option of merging this segment with a rival firm.
Context of Recent Performance
This development follows Nokia’s recent announcement, indicating a 32% drop in operating profit for the second quarter, attributed to a decline in demand for 5G telecom equipment.
Initial Interest from Samsung
Samsung Electronics, recognized as the world’s largest manufacturer of memory chips, smartphones, and televisions, has expressed preliminary interest in acquiring certain assets from Nokia. This move aligns with Samsung’s strategy to enhance its capabilities in radio access networks, which are essential for connecting mobile devices to telecom infrastructure. It is important to note that the discussions are still at an early stage, and there is no confirmation that a formal agreement will be reached.
Company Responses
In response to the swirling rumors, Nokia refrained from making comments, emphasizing its commitment to the Mobile Networks sector, which it describes as “a highly strategic asset for both Nokia and its customers.” Meanwhile, Samsung Electronics declined to provide any comments regarding the report from Bloomberg.
