Facebook Inc (NASDAQ:FB) is seriously weighing options to acquire Nokia Corporation (ADR) (NYSE:NOK)’s Here maps.
Nokia has been scouting for a short time to divest Here mapping business. Many firms are interested to make use of Here maps, but not ready to clinch the deal.
Facebook is testing the feasibility of Here maps usage on some of its Android version standalone apps like Instagram and Messenger.
According to a spokesperson at Facebook, the company is testing Here maps to gain more flexibility and control in delivering the maps consistently. However, Facebook has not yet made its decision for the outright purchase.
Nokia is very excited that all of the customers of Facebook will get access to the Here maps.
But Facebook should buy Here mapping before any other company snatches it. The fully featured and reliable Here maps can be utilized to generate additional revenues through engaging more and more users.
The mapping business may find best deal from a big car maker that has an interest in self-driving cars.
Other contenders for Nokia Here maps include Samsung, Yahoo! Inc. (NASDAQ:YHOO), Uber and TENCENT HOLDINGS ADR (OTCMKTS:TCEHY).
The two big firms that have an eye on Nokia’s Here are Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL).
Their main aim is not to benefit from the maps but to prevent others from putting their hands on it.
Both Apple and Google have their mapping systems. However, Apple’s mapping services are not so compelling in performance and usage. But the company is unlikely to integrate Here maps in its products.
Google has put in considerable efforts, time and money on developing mapping system. It doesn’t make sense for the company to acquire Here maps.
Microsoft Corporation (NASDAQ:MSFT) has also developed its own Bing Maps. The company could have acquired Here maps when it purchased the handset business of Nokia if it was a serious contender.
On contrast, the deal with Facebook makes sense given its large reach.