Nokia is not trying to sell its business. Well, at leas for now. Their operations will continue as normal within the same premises actually. The only difference will be they will have a significant cash boost as a result of this sale. However, they are likely to pay a rent for using the same place owned by someone else.
It's a bit like becoming a tenant in a property you used to own and live in.
They are making their target bigger. If they are trying to sell the company, they sport a better balance sheet and now dont have to worry about selling buildings if the buyer wants to merge both firms.
Well, if the strategy works fine - downsizing/outsourcing and letting space viz-a-viz. Would devising a new driver(s) for its mobile phone business not a best option? Or exploring other innovatives have all been exhausted?
I am not sure if outsourcing will be cheaper than having full-time employees working for Nokia. Maybe if the outsourcing is done in the Far East it could work out to be cheaper. If that is the case, the management overheads for such outsourcing could be quite expensive.
I also agree with Bolaji on Nokia's objective of strengthening the balance sheet.
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