BMW, Audi and Mercedes-Benz have reached a stand-off regarding their bids for Nokia’s HERE Maps service, with sources saying that there are now certain pricing & structure issues with the deal.
Nokia is indeed looking to sell their lucrative HERE maps software, but talks with the three German car manufacturers have reached a difficult stage because neither of them apparently feels the need to pay a very high price anymore – since there are signs of rival bidders (Uber) dropping out of the race.
Financial analysts have estimated that HERE Maps is valued anywhere between $2.2 billion and $4.4 billion, which means that somebody is definitely going to have to overpay if they hope to edge out the competition.
Besides, when rival companies bid for things, it’s customary for those who suddenly want out of the deal to drive the price up and force their competitors to overbid…simply because they can.
Regardless, there are other bidders in play such as a consortium including Uber and China’s Baidu, plus a 3rd group led by Chinese social network & online media company Tencent.
So far, it appears bidders come and go, and the whole thing is in a state of flux, though it’s quite understandable why the three luxury car makers are looking to come up with the winning bid.
It is thought that the high-definition maps industry could grow into a $50 billion market, and being on the outside looking in could slow down your progress in the automotive industry – especially with cars looking to become more autonomous.
Story references: Automotive News Europe
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