Here is why Uber may possibly pay out much more than $three billion for Nokia’s maps

Who would have thought electronic maps could be worth so considerably!

Uber , BMW, Audi and Mercedes-Benz are all reportedly seeking to pay out billions to get Nokia’s mapping unit.

The enterprise division — called Listed here — is regarded a leader in navigation, mapping and area intelligence. The technological innovation is utilised in auto dashboards and smartphone apps, and the maps cover roughly two hundred nations around the world.

The New York Occasions noted Thursday that Uber manufactured a bid worth as significantly as $ 3 billion to acquire the Nokia device.

Shares in Nokia ( NOK ) jumped by approximately three% Friday in reaction to the report.

Meanwhile, German automakers BMW, Audi and Mercedes-Benz are seeking to staff up to post a formal bid, in accordance to a report in The Wall Street Journal .

Nokia introduced last month that it was contemplating a sale of the mapping unit. But it would not give any comment when contacted by CNNMoney.

Uber, Audi and Mercedes-Benz also refused to comment.

BMW did not instantly return requests for remark.

The Nokia mapping technology is utilised by numerous automakers.

In accordance to the Nokia internet site, its maps can be identified in roughly eighty% of cars with built-in in-sprint navigation systems in North The us and Europe.

Analysts seem to be confident that Nokia will get a good value if and when it sells the division.

“We feel the value is very likely to be north of €3 billion,” explained equity analysts at the investigation organization Liberum. That €3 billion interprets into roughly $ three.four billion.

Eleni Marouli, a senior analyst at IHS, also thinks the device is value considerably far more than $ 3 billion.

Marouli factors out that Uber is possibly eager to acquire the Nokia unit to reduce its dependence on Google ( GOOG ) Maps.

Marouli also notes that Nokia’s maps are fantastic for places like India where individuals do not have continual world wide web connections, considering that you can obtain the Nokia maps and use them offline.

Nokia is also in the midst of other major organization transactions.

The organization is buying Alcatel-Lucent in an all-inventory deal that values the French company at €15.six billion ($ seventeen.six billion). The combined company will be referred to as Nokia Company, with headquarters in Finland.

CNNMoney (London) May eight, 2015: 6:57 PM ET

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