No More Cash from Nokia or Siemens for Network JV
Nokia Siemens Networks CEO Rajeev Suri told company employees in a letter that the company will not receive any more funding from parent organizations Nokia or Siemens. "Our profitability remains far too low, with huge net losses since the start of the company," said Suri. "We continue to burn cash and have consistently generated negative free cash flow. We have too many businesses that have never produced adequate returns and regions that continually deliver losses." Nokia Siemens Networks recently announced plans to reduce its workforce by 17,000, or approximately 23%, in order to save $1.34 billion in costs. Both Nokia and Siemens contributed about $666 million to Nokia Siemens Networks in September. With no more funding on deck, Suri says that the fixed-line VoIP, broadband access, WiMAX, narrowband, carrier Ethernet, business support systems, and communications and entertainment solutions business units will either be cut or put in "maintenance mode."
Nokia Dishes More On Possible Phone Plans
Nokia CEO Rajeev Suri today reiterated that the company would like to return to the phone business, but said it is in no rush. Speaking at the Mobile World Congress trade show, Suri noted that Nokia will not manufacture its own handsets, but will instead license its brand to an outside manufacturer.
Nokia Gains Control of Alcatel-Lucent
Nokia today said it has officially taken the reigns of Alcatel-Lucent after its public exchange offer for Alcatel-Lucent was accepted by the French stock market authority. Nokia expects to merge the two companies in order to form a telecommunications powerhouse to compete against Ericsson, ZTE, and others.
HMD Global Raises $100M to Expand Nokia Phone Business
HMD Global today said it has raised $100 million in funding in order to help the company grow. HMD Global is the sole licensee of the Nokia brand and makes and sells Nokia-branded phones that run Google's Android operating system.
Nokia to Acquire Withings for Health and Fitness Push
Nokia today said it plans to acquire Withings for about $192 million in cash. Nokia hopes the acquisition will help it make a stronger push into the markets for wearables and the internet of things.