World News: Nokia wants to buy NAVTEQ

World News:  Nokia wants to buy NAVTEQ

According to a Wall Street Journal report, Nokia spent Sunday night in discussions to buy NAVTEQ.

Valued at $7.61 billion, NAVTEQ would be one of Nokia's biggest-ever corporate acquisitions, the report said.

The two companies have reportedly been negotiating for the past few weeks, but there are still some issues that need to be ironed out.

Neither company has volunteered any comment.

Nokia entered the navigation industry when it acquired gate5 in May 2006.

“This is big news for the industry as a whole,” says Thomas Hallauer, director of Telematics Update. “The consolidation of map providers in the hands of the hardware manufacturers makes it very clear how important map data has become. It introduces a new dimension to the LBS market, and steers the industry even more directly towards mobile applications.”

Hallauer adds that it also opens up a huge gap for a third entrant in the market. “Amazingly, map data has always been covered by only two players in the US/EU. Now is the time for Autonavi, Zenrin or any of the big map providers in Asia to enter the Western market.”

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