Nokia in talks to sell its luxury Vertu brand for 200 million euros

Nokia is looking to raise some money after its rather poor quarterly earnings last week, and Reuters is reporting it is in talks with a private equity firm to sell its Vertu subsidiary for 200 million euros.

During the earnings announcement, Nokia said it would sell of its non-core assets to avoid prolonged exposure to extraneous elements of its business. Vertu, a brand often mocked for its ostentation, is well known for releasing phones with gem stones and diamonds at prices equivalent to a small house or high-end automobile. The Financial Times reported in December that Nokia was shopping around for a buyer, and that despite logic to the contrary, Vertu is actually a profitable enterprise, since they likely produce only a small number of high-margin devices.

Nevertheless, Nokia cannot afford any excess red on its balance sheet, and needs to raise the cash more so than create luxury smartphones for the 1%. Standard & Poors recently cut Nokia’s credit status to ‘junk’ rating, meaning it doubts the company’s ability to pay back its debts in due time.

Source: Reuters