Google Rumored To Be Purchasing Waze For $1.1 Billion

 

 

Google Inc. has agreed to acquire map-software provider Waze Inc. for about $1.1 billion, a person with knowledge of the deal said, seeking to keep competitors such as Facebook Inc. from eroding its lead in mobile-navigation programs.

The deal for Waze, based in Palo Alto, California, may be announced as early as today, said the person, who asked not to be named because the plans are private.

As consumers shift to smartphones and tablets and away from personal computers, Facebook and Google are increasing efforts to court customers on the move. Waze, whose mobile app solicits input from more than 40 million users to improve directions and display traffic and road-hazard details, would help Google add social features to its mapping tool. It may also help Google extend its dominance in maps over rival Apple Inc.

“Google needs to maintain supremacy in maps, as they are a key to mobile advertising,” Andrew Frank, an analyst at Gartner Inc., said in an e-mail. “They need more ways to shore up their social efforts.”

Waze Chief Executive Officer Noam Bardin didn’t return a call seeking comment. Paul Solomon, a spokesman in Israel for Mountain View, California-based Google, said the company declined to comment.

Google has been discussing a deal with Waze since at least May 23, when Bloomberg News initially reported the talks. The acquisition plan was first reported yesterday by Globes, an Israeli financial daily. Globes listed the price as $1.3 billion.

 

Social Mapping

 

The deal would let Google, owner of the world’s most popular search engine, eliminate a threat to its home-grown navigation app. It would also keep a growing provider of mapping software away from other companies, including Facebook, the world’s largest social network. Facebook, aiming to bolster its own mobile strategy, offered Waze almost $1 billion last month, two people familiar with the matter said in May.

“The rivalry between Google and Facebook is escalating,” Frank said. “This will be seen as another skirmish in an increasingly aggressive competition, which should ultimately benefit consumers and advertisers.”

Waze’s mobile app, which runs on Apple’s iOS operating system and Google’s Android software, alerts users to potential traffic slowdowns or suggests alternative ways to reach destinations. The service also notifies drivers of road work, speed traps other potential hazards, using input from users. With free tools available over the Web and on mobile devices, Waze generates revenue via location-based advertising.
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