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The rumours come amid financial difficulty in the sector
Nokia has officially denied rumors that it plans to sell its mobile networks division to Samsung.
Speculation about a potential sale emerged after a Bloomberg report yesterday suggested that Nokia was considering selling or spinning off its mobile networks business, which could be valued at around $10 billion, with Samsung mentioned as a potential buyer.
Citing people familiar with the matter, the article explained that the investment interest has come “amid increasing pressure to find new growth in the troubled telecom equipment sector.”
Nokia swiftly rejected these claims, stating in a regulatory filing that it “is issuing this stock exchange release in response to the recent trading activity of its stock due to a market rumour. Nokia has nothing to announce in relation to the speculations published in an article today, and no related insider project exists.”
The company emphasised its commitment to its mobile networks division, describing it as a “highly strategic asset critical to both Nokia and its customers”.
This division remains crucial for Nokia despite recent financial challenges, including a 25% decline in sales and a 32% drop in operating profit in Q2 2024.
In December last year, Nokia suffered a significant blow after AT&T chose Ericsson to supply the Open RAN equipment that will carry 70% of its wireless traffic by the end of 2026. The $14 billion deal will result in Nokia equipment in AT&T’s network being replaced with Ericsson tech in certain areas.
Nokia CEO Pekka Lundmark called the news “disappointing” in a statement.
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