Google Close To Acquiring Mapping App Waze For $1.3 Billion
Image via Flickr/ brionv
In a move undoubtedly timed to overshadow Apple’s World Wide Developer’s Conference, Google reached an agreement to buy the social mapping system Waze for $1.3 billion. After a bidding war with Facebook, Google is close to nipping its mapping competition in the bud, according to the Israeli newspaper Ha’aretz. Although the deal hasn’t been finalized, Google has reportedly agreed not to lay off any of Waze’s Israeli employees and allow the company to continue developing in the Middle Eastern nation “for at least three years.”
Called the Facebook for drivers, Waze, founded in 2007, offers a system that incents drivers to share traffic updates through the app. For example, if one user is stuck in traffic, he or she can post the update through Waze and other drivers will know to avoid the particular route. The company relies on tracking users to build its mapping database. The more users share, the more accurate Waze’s maps become. The company currently boasts about 50 million active users—an increase from 20 million in July 2012.
Although Google already boasts its own highly-popular mapping tool, the acquisition of Waze’s technology could add social features to its software, as well as prevent a competitor from acquiring the technology in the future.
Image via Waze/iTunes
Under the deal, Waze CEO Noam Bardin will retain his position, and Waze will also retain its own brand as Google will not integrate the technology for the contracted period. According to the Wall Street Journal, the Waze purchase is Google’s fourth-largest acquisition to date.
Facebook also bid $1 billion for Waze, but negotiations apparently fell apart a couple of weeks ago when the social network was unwilling to allow Waze to maintain its own employees in Israel.
Some analysts wonder if the acquisition will be permitted by regulators since Waze is currently a Google Maps competitor. Although it’s unlikely to be blocked by US regulators since Waze is not a major competitor to Google, Europeans may prove to be a harder sell. Google is already in the midst of antitrust claims in Europe.
