Nokia Takes Control Of Nokia Siemens Networks For $2.2 Billion
Ryan Martin / 4 years ago
Rumours of Nokia taking over its partner’s stake in Nokia Siemens Networks (NSN) appeared just a day ago and already we’ve seen the deal happen. Both Nokia and Siemens have made the deal official and NSN will now be a fully owned Subsidiary of Nokia for a deal worth €1.7 billion ~ $2.2 billion. The takeover should see the Siemens name eventually phased out by Nokia though we could also potentially see a totally renamed Nokia brand if such a clause was present in the deal.
Earlier this year Siemens CEO Joe Kaeser told Dow Jones Newswires that his company would help “NSN to move into a better place” essentially announcing Siemens’ intentions to separate from the NSN partnership. The move is part of Nokia’s plan to consolidate its mobile handset business in the face of stiff competiton from Android and iOS competitors as well as price pressure from cheap “white-box” handset brands exporting millions of cheap Android handsets to Europe every year.
One of NSN’s main selling points to Nokia is its strong LTE implementation that could give Nokia a growth opportunity and allow it to take on other big smartphone vendors with 4G LTE implementation.
Image courtesy of Wikipedia