What will happen once hmd globals 10 year licencing deal with nokia is over

Hi guys I have been curious about what will happen when Nokia's 10 year licencing deal with hmd global is over

What will happen once hmd globals 10 year licencing deal with nokia is over

Just jett Just jett
✭✭  / 

Hi guys I have been curious about what will happen when Nokia's 10 year licencing deal with hmd global is over

Comments

  • singhnsk singhnsk
    Super User  / 

    It depends on what were the terms of that licensing deal. And it is between hmd and Nokia. They never shared it in the public domain. There will definitely be a clause in the agreement about what happens at the end of the licensing agreement.

    The possibilities are:

    1. HMD will sign a new licensing agreement to continue using the Nokia brand.
    2. Nokia will not license the brand to hmd and will look for some other interested party.
    3. Nokia will acquire hmd and start running the company under its name -- Very unlikely given the current events
    4. HMD will get bankrupt even before the 10 year period expires and that's the end of Nokia brand in the world of phones

    The outcome will depend on how HMD performs. The first point is what should happen ideally, but it largely depends on how well hmd's operations are running and if or not they manage to sustain the business while also building the value for the Nokia brand name. Nokia should only be concerned with the income from the sales and the value of its brand. The value is said to have increased during the past years, so, they are definitely okay with it so far I'd say.

    Nokia is getting a new CEO soon, who will make a decisive role in it too. Who knows.. Maybe he decides to spend some cash and acquire HMD Global. However, as if today, Nokia doesn't seem to be in good cash standings. Even the talks of possible acquisition of Nokia are showing up.

    In case Nokia gets acquired by some company, then that company will decide what happens to hmd.

  • San.Phu San.Phu
    ✭✭✭  /  edited April 26

    May be after 6 to 7 years, HMD will starts to drop Nokia branding and come up with full fledged HMD branding if HMD remains relevant at that time. Then there will be no requirement for Nokia licensing after 10 years licensing deal.

  • rohitkrme rohitkrme
    ✭✭✭  / 

    NOKIA should just buy HMD and bring back the good old times... 🤞

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