Bloomberg reports that the deal whereby Google (GOOG) is to buy Israeli navigation app company Waze may be announced today. "Globes" broke the news of the deal yesterday. Bloomberg cites "a person with knowledge of the deal" as putting the price at $1.1 billion. The Globes report mentions $1.3 billion.
"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.," Bloomberg writes. Bloomberg initially reported talks between Google and Waze in May. It quotes Andrew Frank, an analyst at Gartner Inc., as saying, “Google needs to maintain supremacy in maps, as they are a key to mobile advertising. They need more ways to shore up their social efforts.”
Bloomberg reports that Waze CEO Noam Bardin did not return a call seeking comment.
Bloomberg cautions that, according to Allen Grunes, a former antitrust attorney for the Justice Department in Washington, a Google purchase of Waze may still be scrutinized by US regulators for its potential to alter the competitive landscape.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013