There is said to be a major merger in the world of telecommunications. According to some insider reports, Nokia and Ericsson are said to work together in the future. But will Nokia be able to save it?
The telecommunications industry could experience one of the greatest mergers of the decade in the near future if the rumors are true. According to a Bloomberg report, Finnish companies Nokia and Ericsson from Sweden could merge their businesses.
The network supplier Nokia is apparently under pressure. Revenue is reported to have declined sharply, prompting the company to put together a team of consultants to find solutions.
Possible solutions include the sale of some assets or a merger. Other options have also been reported to be considered.
The merger with Ericsson is only an option and may not be the decision Nokia will make. However, should this happen, the new company could take on the Chinese companies Huawei and ZTE much more easily when it comes to the topic of 5G.
Nokia is currently going through a difficult time. The value of his shares fell by a third last year. Bloomberg adds that a merger will not be a walk since a merger of this size will definitely face hurdles.
Nokia will also make some management changes. At the beginning of December 2019 it was reported that the chairman Risto Siilasmaa in April 2020 after eight years at the top of the Company is replaced. His successor is Sari Baldauf, a former head of the networks department.
Nokia has shortened its earnings outlook and also suspended the dividend. One is currently investing heavily in 5G technology in order to catch up with the competition. However, this affects the profits. Nokia says that it is only in the year 2021 with one again Profit calculates.
The post Nokia & Ericsson: Do the suppliers join forces against Huawei? first appeared on Schmidti's blog and was supplemented by CHIP authors with further information.