Audi, BMW and Mercedes are teaming up to buy Nokia's Here Map Service

[Bouzoo]

 

Germany’s big-three premium-brand auto makers are preparing to launch a formal bid to acquire a majority stake in Nokia Corp.’s Here mapping unit, in a consortium that includes Chinese technology group Baidu Inc. and values Here at “considerably more than €2 billion,” according to people familiar with the situation.

 

BMW AG, Audi AG, and Daimler AG’s Mercedes-Benz are usually fierce rivals in the market for luxury automobiles. But they are so worried about Silicon Valley’s ambitions that they are banding together to acquire Nokia’s mapping unit to prevent a technology giant such as Google Inc.,Apple Inc. or Facebook Inc. from gaining control of a key part of the technology needed to run self-driving cars and in-car digital services.

 

“The greatest threat to the automobile industry would be if Google developed an operating system for self-driving cars and made it available free to everyone,” said a person familiar with the situation. “We need the map for the operating system in the cars.”

 

Here generated a loss of €32 million last year, but the business is growing. It generated revenue of €970 million in 2014, an increase of 6% from the year before. Nokia has identified Here’s fair value at about €2 billion, or $2.24 billion.

 

In addition to the German auto makers, Here’s customers include General Motors Co, Ford Motor Co, Jaguar Land Rover, Honda Motor Co, Nissan Motor Co and Renault SA. Here says it controls about 80% of the market for on-board navigation systems in cars in the U.S. and Europe.

 

Source: http://www.wsj.com/article_email/german-car-makers-preparing-formal-bid-for-nokias-here-map-service-with-chinas-baidu-1430843087-lMyQjAxMTI1NDA0NjEwNjYzWj

 

So what do you think? Is this a good or a bad thing?

[ImBleu]

People keep wanting to buy Nokia's stuff. I just hope Nokia makes some android flagships once MS's deal runs out.

[ShadowCaptain]

Anything that can help improve in car sat nav is good in my opinion

[dalekphalm]

Nokia's Here Map apps are quite frankly the best map/navigation apps I've ever used. As long as they don't turn it into a proprietary walled garden (eg: Only available as built-in NAV in a car from one of those manufacturers), then I'm totally fine with it.

 

I'm assuming they would acquire the entire team/talent and everything that goes with it too. I would be worried if they simply purchased the technology though.

[BWSSoldya]

“The greatest threat to the automobile industry would be if Google developed an operating system for self-driving cars and made it available free to everyone,” said a person familiar with the situation. “We need the map for the operating system in the cars.”

 

Ermm 'scuse you? Wtf are you talking about made it available free to everyone being bad? I am a huge benz fan, but seriously... I think I'd rather have a Google built OS, or is there anyone here that can tell me why I don't want this? 

[Bouzoo]

Ermm 'scuse you? Wtf are you talking about made it available free to everyone being bad? I am a huge benz fan, but seriously... I think I'd rather have a Google built OS, or is there anyone here that can tell me why I don't want this? 

 

They really don't like losing money

[Kherm]

I hope this doesn't end HERE's partnership with Garmin, I'd be furious

[BWSSoldya]

They really don't like losing money

 

Nope, not the reason I'm looking for  

No I think you're right, I think that is the reason but that reason is literally as stupid as Comcast. 

[Naeaes]

It's now official-ish. http://www.reuters.com/article/2015/08/03/us-nokia-here-automakers-idUSKCN0Q80F320150803
The price wound up being 2.5 billion euros​ and the deal is planned to be finalized during 2016.