Telecom equipment maker Nokia (NYSE: NOK) has been exploring options for its mobile networks business and has drawn interest from suitors including Samsung Electronics, Bloomberg News reported on Thursday, citing people familiar with the matter.
Nokia has considered multiple options including a divestment, selling some or all of its mobile networks business which could be valued at as much as $10 billion, and combining the business with a rival, Bloomberg said.
The news comes after Nokia reported last month that its second-quarter operating profit dropped 32% due to weak demand for 5G telecom equipment.
The report said that Samsung, the world’s biggest maker of memory chips, smartphones, and TVs has expressed initial interest in acquiring some Nokia assets as it seeks to gain scale in the radio access networks that connect mobile phones to telecom infrastructure. According to the report, the talks are still at an early stage with no guarantee that a deal will take place.
Nokia (NYSE: NOK) told Reuters it does not comment on market rumors or speculation, adding that the Finnish group is committed to the success of Mobile Networks, “a highly strategic asset for both Nokia and its customers”.
Samsung Electronics declined to comment on the Bloomberg report.
(Source: Reuters)
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.
