Nokia has denied a Bloomberg report suggesting it is in discussions with Samsung Electronics or other bidders to sell its mobile network business, potentially valued at up to $10 billion. The Finnish tech giant refuted these claims in a regulatory filing, stating, “Nokia has nothing to announce about the speculations published today, and no related insider project exists.”
The company underlined its commitment to its Mobile Networks division, describing it as a highly strategic asset for Nokia and its customers. This statement came in response to the report, which indicated preliminary interest from Samsung Electronics in acquiring Nokia’s mobile network assets.
Nokia’s denial follows a Bloomberg report suggesting the company had engaged in discussions with several potential buyers, including Samsung Electronics, regarding its mobile networks business. The report, citing anonymous sources, indicated that Nokia’s assets might be valued at up to $10 billion. It also mentioned that while preliminary interest had been shown, Nokia was not certain to pursue any transaction.
According to the Bloomberg article, Samsung Electronics was interested in acquiring certain Nokia assets to enhance its presence in the radio access networks, which are crucial for connecting mobile phones to telecom infrastructure. The report also highlighted Nokia’s ongoing challenges in competing with larger rivals like Huawei Technologies.
Nokia’s mobile networks division, which provides servers and base stations to global wireless operators, reported €1.97 billion ($2.19 billion) in sales for the second quarter, with approximately 44% of its total revenue.
However, this figure marks a 25% decline from the previous year due to major smartphone companies’ slowdown in 5G network upgrades. The division’s performance has been affected by decreased demand for fifth-generation telecom equipment, contributing to a 32% drop in Nokia’s operating profit during the same period.
The speculation about Nokia’s potential sale of its mobile network assets has led to a 5.1% increase in its share price, closing at €3.98 on Thursday.
Samsung, which has been relatively quiet since its $8 billion acquisition of Harman in 2017, may be looking for merger and acquisition opportunities, as Vice Chairman Han Jong-hee indicated in March.
In recent years, Nokia has faced increased competition and lost business to rivals like Samsung and Ericsson. Notably, AT&T awarded Ericsson a $14 billion open Radio Access Network (RAN) contract last year, bypassing Nokia.
Also Read:
- EXAONE 3.0: LG’s Latest AI Breakthrough Powered by Google Cloud’s Advanced Infrastructure
- SK Hynix Unveils World’s First 16GB DDR5 Chip with 6th-Gen Technology
- SK Telecom, KT, and LG Uplus Unite to Standardize APIs, Streamline App Development
- Samsung Promises Seven Years of OS Updates for New AI Smart TVs
- Hanwha Aerospace Launches First Overseas Production Facility in Australia
