Facebook was in talks to buy Nokia’s Here mapping division, but has instead signed a contract with the company. Under the contract, Here will be powering mobile maps on Facebook Messenger and Instagram.
Nokia’s Here is a separate division that is valued at $2 billion with estimates that the selling price can be twice as high due to the company’s current data set. Several companies, including Facebook and Apple, have been rumored to show interest in acquiring the company.
While the deal was not officially announced by either company, both companies have confirmed that Facebook is testing the technology. Currently, the technology has not been integrated into the Instagram or Messenger app, but it can be found when visiting Facebook on a mobile device.
Facebook will be able to pinpoint a user’s location more accurately thanks to Here and Facebook will further be able to expand the company’s business offerings. Facebook will use the location technology to provide ads to users in a specific geographical location. This will benefit businesses by providing further revenue potential.
The company also allows users to find nearby places.
Since no news of the deal was officially announced, investors are questioning what will happen if Here is acquired by another company.