Google all set to acquire Waze for $1.3 million

by CXOtoday News Desk    Jun 11, 2013

Google

Google Inc is reportedly on the verge of finalising a deal with online mapping company Waze. The deal is expected to be announced this week a source told Reuters.

“Negotiations are nearly final. There are a couple of details being worked out,” a source was quoted as saying. The source described the remaining details as “logistics” rather than significant sticking points.

Waze received interest from several companies about an acquisition, and it switched to focus its efforts on an acquisition, the source told Reuters. The deal with Google comes after discussions between Waze and social networking company Facebook Inc fell through, according to a report in the technology blog AllThingsDigital. The reason being Waze was unwilling to relocate its Israeli-based engineering team to Facebook’s U.S. headquarters.

Waze Chief Executive Noam Bardin and a small staff operate out of their U.S. headquarters in Palo Alto, California, while about 90 employees are based in home country Israel.  There had also been media reports earlier this year that Apple Inc was in talks to acquire Waze.

Maps and navigation services have become a key asset for technology companies as consumers increasingly adopting smart-phones and other mobile devices. Waze uses satellite signals from members’ smartphones to generate maps and traffic data, which it then shares with other users, offering real-time traffic info. The four-year-old Waze, which has 47 million users, has raised $67 million in funding to date from firms including Kleiner Perkins Caufield & Byers, Blue Run Ventures and semiconductor company Qualcomm Inc.

Google’s existing maps service is among the most popular, which could raise antitrust issues for the deal. News of the deal with Google was first reported by Israeli financial newspaper Globes on Sunday.