Reports a few minutes ago hinted that Google is about to buy Waze for US$ 1.3 billion. Waze is an Israeli service that uses satellite signals from members’ smartphones to generate maps and traffic data, which it then shares with other users, offering real-time traffic information.
The news was not surprising after Peter Cohan of Forbes announced early this year that Facebook's initiative to buy Waze for US$ 1 billion fell apart after the former insisted on locating itself in Israel, while the latter wanted Waze to move to California.
It was not confirmed but there was also another report that says Apple was considering a US$ 500 million bid for Waze.
Sources say that under the deal, Google would keep Waze and its CEO, Noam Bardin, in Israel for the next three years and allow it to remain independent and retain its brand.
Nobody has a good idea what really are the plans of the search engine company, but many hinted that it was a move to eliminate the competition in 3 years. Google will most probably allow Waze three years to fix everything, clean the house and ensure smooth transition before the eventual takeover.
The Facebook deal may be a better option and has a higher chance of keeping Waze way beyond 2016, but Google was the most profitable choice in the short run.
According to Ha'aretz, "Google's interest in Waze stems principally from its aim of blocking Facebook’s growth. The search company operates its own navigation service that competes head on with Waze. It has invested heavily in its system, including the ambitious Google Street View database of images and satellite images."
The news was not surprising after Peter Cohan of Forbes announced early this year that Facebook's initiative to buy Waze for US$ 1 billion fell apart after the former insisted on locating itself in Israel, while the latter wanted Waze to move to California.
It was not confirmed but there was also another report that says Apple was considering a US$ 500 million bid for Waze.
Sources say that under the deal, Google would keep Waze and its CEO, Noam Bardin, in Israel for the next three years and allow it to remain independent and retain its brand.
Nobody has a good idea what really are the plans of the search engine company, but many hinted that it was a move to eliminate the competition in 3 years. Google will most probably allow Waze three years to fix everything, clean the house and ensure smooth transition before the eventual takeover.
The Facebook deal may be a better option and has a higher chance of keeping Waze way beyond 2016, but Google was the most profitable choice in the short run.
According to Ha'aretz, "Google's interest in Waze stems principally from its aim of blocking Facebook’s growth. The search company operates its own navigation service that competes head on with Waze. It has invested heavily in its system, including the ambitious Google Street View database of images and satellite images."
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