Business, Hardware

Nokia hits Rock Bottom: Raising cash by Selling its HQ in Espoo, Finland?

The downfall of Nokia has been explained in great length here at Bright Side of News*, seeing a company that shipped more smartphones and phones a quarter than three major competitors combined – crashing down to the #4 spot in smartphones and #3 overall.

Nokia Headquarters in Espoo, Finland. The HQ is looking across the Baltic Sea to Helsinki. Photo: Wikipedia
Nokia Headquarters in Espoo, Finland. The HQ has a view across the Baltic Sea to neighbouring Helsinki. Photo: Wikipedia

The revenue flow "crashed and burned" and the company is looking into ways how to generate more cash. One of ways how to generate revenue would be to sell majority or even all of its non-core assets, such as buildings. And one of those buildings is a complex in Espoo, Finland. Nokia spokesman confirmed to Reuters that they are looking into ways how to generate cash, and the expected income from the sale of the building complex is between 200-300 million Euro ($260-390 million).

Nokia however, would not move as they would simply lease the building back. Truth to be told, this doesn?t sound like a bad idea, and it was exercised by many companies in the semiconductor and telecom business. Perhaps the most known cases of selling the buildings and leasing them back is the case of German giants Deutsche Telekom AG and Siemens AG, but it represents the end of an era which was accelerated with the infamous "Burning Platforms" memo Steven Elop infamously wrote on February 11, 2011. Year and a half later, Nokia’s market share is in shambles.

In any case, "no bueno."