Nokia and Siemens have a 50/50 joint venture, NSN, that makes telecoms and networking equipment; they’ve been trying to sell it off to private equity firms but no one will buy it, the Journal says.Why?
The fact that it lost almost $1 billion last year might have something to do with it. And Nokia wants to sell because it reports the JV’s earnings as part of its own and it drags everything down.
Though Nokia Siemens has had three consecutive quarters of strong revenue growth, it has recorded only two profitable quarters since it was formed in 2007.
The venture recorded €12.7 billion ($18.02 billion) in revenue last year, representing roughly 30% of Nokia’s total. The venture had an operating loss of €686 million last year, following a €1.6 billion loss the year before.
Yeech. Good luck fixing it.
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