Hi guys I have been curious about what will happen when Nokia's 10 year licencing deal with hmd global is over
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:
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.
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.
NOKIA should just buy HMD and bring back the good old times... 🤞
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