Nokia to Buy Navteq

[Mike L.]

You can read the story here:

http://www.nytimes.com/aponline/technology/AP-IL-Finland-Nokia-Nav.html?_r=1&oref=slogin


Mike L.

 

[lec510]

The move made everyone worried as per Montreal Gazette Oct 2nd.

Nokia bid turns GPS market on its head
Offers $ 8.1 billion for Navteq; Google entry anticipated
FRANKLIN PAUL and NICLAS MIKAS
REUTERS
NEW YORK ?
Nokia?s offer to buy digital map supplier Navteq threatens to reshape the consumer navigation device market, putting pressure on market leader Garmin Ltd. and perhaps opening the door for Google Inc.? s entry.


The $8.1-billion bid for Navteq, if successful, could make the world?s largest cellphone manufacturer a leading player in the navigation business, which is one of the technology industry?s fastest-growing segments.


Nokia?s financial resources, wireless technology and carrier relationships may give it an edge in creating phone-based navigation devices, analysts said. What?s more, it could damage Garmin?s ability to influence design decisions at Navteq, Garmin?s biggest map supplier.


?Should the deal go through ? it could have profound implications for the navigation and wireless markets,? said CIBC World market analyst Yair Reiner.


Devices made by Garmin, TomTom and others use signals from government satellites to pinpoint a user?s exact location. Mapmakers like Navteq augment that with myriad data, such as traffic conditions, nearby hotels, and whether a highway exit is on the left or right.


Navteq had been seen as a takeover target since TomTom offered $2.6 billion in July for Tele Atlas, Navteq?s only global rival.


Market watchers said Nokia?s willingness to put down about $8 billion for Navteq showed it saw enormous market potential for navigation devices, which could see wider adoption this holiday season because of price cuts and cheaper models.


?It validates this market segment and it means that the combination of TomTom and Tele Atlas is maybe a takeover target in itself,? Fortis analyst Felix Oberdorfer said. TomTom?s market capitalization is about 6.5 billion euros.


An industry executive speaking on the condition of anonymity said Google may decide it needs access to a digital map database, especially if the widely rumoured Google phone turns out to be a real product. Google is already taking comprehensive pictures of cities for its online maps system.


?If Google turns out to be a Nokia competitor in six months, it could be a worry for Google? not to have the same access to digital maps, the executive said.


In such an event, Google could try to buy TomTom after the acquisition of Tele Atlas closed instead of making a counterbid for Navteq or Tele Atlas directly, the executive said.


One analyst suggested Google could try to build its own navigation products, but said it would take years and billions of dollars to complete.

 

[Mike L.]

NY Times Article

Here's the link to an article in today's NY Times regarding Nokia and Navteq: http://www.nytimes.com/2007/10/02/technology/02nokia.html?_r=1&ref=technology&oref=slogin

ML