Feb 26, 2020 - Technology

Report: Nokia exploring merger or asset sales

Nokia's headquarters in Espoo, Finland
Photo: Nokia

Finnish network gear-maker Nokia has hired advisers to consider merger possibilities, asset sales or other strategic alternatives, according to a report Wednesday from Bloomberg.

Why it matters: Although Nokia has been struggling amid intense competition, it is one of only a handful of companies that make gear for 5G and other cellular networks, an area of increasing geopolitical focus and concern.

A Nokia representative was not immediately available for comment.

The big picture: The Trump administration, in particular, has been concerned with who builds and runs cellular networks, with Attorney General Bill Barr recently suggesting the U.S. find ways to take a stake in Nokia or Ericsson, which along with China's Huawei, is dominating the telecommunications equipment business.

Nokia is best known for its phones, although the company sold that business several years ago to Microsoft and used the brand to sell its Windows phones before exiting that business.

  • Now, Android phones are sold under the Nokia brand, but those are made by another company, HMD Global, under a licensing agreement.
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