Thursday, October 4, 2012

Nokia Corporation (NYSE:NOK) decides to sell headquarters to gain stable finances

The Finnish company has been a very industrious one, and after a series of products, they settled in, and struck gold with mobile phones. Nokia Corporation (ADR)(NYSE:NOK), despite being very popular, is not being able to keep up with the cut-throat competition all around. What with technology and patents rushing by at break-neck speed, and companies struggling with all their might to make their presence felt in the market, it is no surprise that Nokia is falling short of stable financial growth.

The company has been making drastic changes in order to stabilize the finances, and it has been letting go of core-assets to make ends meet. The disposing of non-core assets shows how badly the company has to struggle to make things work smoothly for itself. Nokia will be letting go of its headquarters in Espoo, Finland, in order to improve its financial condition. The company spokeswoman, Maija Taimi, said that the company was looking at different options for its non-core assets, which included the headquarters, since it is a part of the real estate holdings.

The headquarters of Nokia, made close to the Baltic Sea, is an impressive steel and glass structure. The price of the building, according to Finnish Newspaper, Iltasanomat, is about 200-300 million Euros, which comes to approximately $259-388 million.

The company has been looking to sell properties as of late, and has made no pretences about it. Nokia told the journalists, that cost-cutting was becoming essential. The company has been struggling for quite a while now, with the quagmire of cut-throat competition, and the inability to keep up with it. Nokia has been letting go of employees, and apart from radical job cuts, there have also been other measurements through which the company is trying to stay afloat.

It is not a surprise, however, that the mobile-makers have to struggle so badly. In a few newspaper reports, it was shown, how Nokia earned as much in a whole quarter as Apple did, in the first weekend of the release of the iPhone5. Apple’s close competitor, and the only company which can think about giving Apple a run for its money, is Samsung. 

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