On March 11, 2011, a corporate filing revealed that Nokia would not require to write down its 8.1 billion Navteq deal. In 2008, Nokia acquired Navteq, the largest digital map maker, to expand its business into the service sector.
That same year, Dutch navigation maker, TomTom, acquired TeleAtlas, a Netherlands-based digital map maker and wrote down €1 billion. Analysts also expected the same thing for the Nokia-Navteq deal. Reuters reports:
However the recoverable value of Navteq has improved to 15-20 percent above the value it is carried in Nokia's books from less than 1 percent higher two years ago, according to Nokia's annual 20-F form filed with the U.S. securities and Exchange Commission.
Only a year ago, Nokia said that Navteq’s recoverable value was 5-10 percent over book value. In 2010, Navteq’s sales grew 50 percent to €1 billion and operating loss narrowed to € 225 million.
Nokia is the top handset maker in terms of sales-volume in the world but it is yet to establish itself in the smartphone market, that is currently observing major growth. The handset maker is losing ground to Android and iOS. To counter Android and iOS’s growth, it partnered with Microsoft.
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