Nokia Buys Navteq For a Measly $8.1 Billion Dollars
I’m sure you’ve heard the news. Nokia, the largest phone manufacturer in the world, will plunk down $8.1 billion dollars (that’s $78 dollars per share) for digital map provider Navteq. Combined with gate5, I guess this makes Nokia a pretty big driving force when it comes to GPSes, maps, and mapping software.
Unfortunately, this spells bad news for Garmin, whose stock has already fallen some 20% in the past two days. The portable navigation device manufacturer is now stuck between two map companies (Navteq and Tele Atlas), and their respective owners (Nokia and TomTom, respectively). Or should I say rivals? Then again, Garmin could’ve just purchased Navteq in the first place so it wouldn’t be in the world of hurt.
Under the terms of the acquisition, Navteq will continue to operate as a separate company – with the head Navteq dude reporting to the head Nokia dude (Olli-Pekka Kallasvuo).
Of course, the Nokia acquisition means that we’ll probably see some more standalone GPS devices similar to the Nokia 330 Auto Navigation GPS device. And maybe better maps on smart2go?
Navteq last traded at 76.10, so the 78 dollar premium isn’t exactly much of a premium.
