Audi, BMW, and Daimler have agreed to spend $2.7 billion on Nokia’s Here mapping tech

The reliability of autonomous vehicles partly depends on an abundance of road data. It’s no wonder, then, that the interest in mapping tech has skyrocketed among companies with self-driving car projects. Case in point: the Wall Street Journal reports that a group of German auto makers — Audi, Daimler, and BMW — have agreed to pay around $2.7 billion for Nokia’s HERE digital maps.

The deal, which is significantly less than the $8.1 billion Nokia paid in its acquisition of the tech from Navteq, could be finalized “in the next few days,” a person familiar with the matter told the Wall Street Journal. The most recent negotiations were motivated on the fear that a Silicon Valley company with a foothold in mapping (i.e., Google or Apple) would snatch up Nokia’s Here, which has been described as “the most advanced digital mapping service in the world.”

The consortium of auto makers managed to beat out ride-hailing service Uber, which is researching self-driving cars of its own and had planned to acquire Here in partnership with Chinese search company Baidu. Uber instead bought the team and backend behind Microsoft’s Bing Maps in June.

A sticking point over the value of Here’s intellectual property may delay a deal. Should it go through, though, the endgame is a comprehensive database of driving conditions. Here is developing “collaborative systems” that would allow cars to upload data — weather, traffic flow, and hazards — to a communal cloud shared among drivers in real time. Audi, Daimler, and BMW plan to invite other car companies to invest in the network.

Automotive companies also see potential for new revenue in self-driving and connected car services, which analysts say could become a $50 billion market. Mapping systems built into cars could show sponsored retailers and restaurants nearby, for instance, or could integrate hotel booking services.

Reuters reports that an overall agreement could be announced by the end of the month.

from Planet GS via John Jason Fallows on Inoreader http://ift.tt/1DwdXYb
Kyle Wiggers