Media claims that the Google Inc. (GOOG), which is the manufacturer of the Android operating system, is bearing in mind for the buying of map-software provider Waze Inc. This has ultimately led to the setting up of a likely bidding war with Facebook Inc. (FB). This news is widely circulating on media these days.
Waze announced a conglomerate with IMS which is the Internet Media Services in April to magnify in Latin America. Waze’s mobile applications have a plus point as they alert users to potential traffic slowdowns or suggests them alternative ways to reach destinations. Another advantage is that the service also notifies teamsters of road work, speed traps other potential hazards, using input from users.
Waze, a free service, makes revenue via location-based advertising. Along with this, its tools are also available over the Web.
For the knowledge of the readers, Waze these days is going after the EOI expressions of interest from multiple parties and hence is looking forward for more than $1 billion, whispered by one of the officials, who asked not to be acknowledged and staying anonymous because of the privacy issues as the declaration were private. According to the people, The Palo Alto, which is the California-based startup, is also likely to remain independent and preserve its independence in place of going in quest of raising a round of undertaking capital financing.
Another thing to be notified over here is that as the consumers drift down towards cellular devices far away from laptops and desktops, what seen is that Facebook, Google and other companies are beefing up their hard works to court customers on the go. As a result, the prospective bidding struggle for Waze, which is using information from online communities for the improvement of driving directions, is eventually a reflection that the widening importance of maps on smartphones and other handheld gadgets cannot be denied now.
Previously also, it was said by some familiar authorities that Facebook, based in Menlo Park, California, has whispered talks to buy Waze for as much as $1 billion.
Google (GOOG), which is founded in Mountain View, California, and several other large technological corporations have also come up to Waze for getting settled into a possible deal since after the Facebook talks became public, the people said.
But what important over here is that despite all these attempts, one of the bidders is close enough to settle the deal and the talks may fall apart, they officials said. Another possibility is that Waze may also walk away from the deliberations and hence may use more endeavor backing to expand its mapping program, which has more than 40 million users around the globe.
I must write this for users that as Google have a widely used mapping tool and hence it could embrace Waze’s technology to increase social features to the software. As a result, a takeover would also result in the elimination of a competitive hazard and hence would keep the startup far out of the hands of any other company, according to Greg Sterling, an analyst at Opus Research.
“If they put a lot of effort behind it and really try to develop a social mapping product, it could be something significantly differentiated from what Google is offering and could grow into a competitor for Google Maps,” Sterling said in an interview.
Apple Inc. (AAPL), which deals out a competing mapping tool, is not at this time is the part of the discussions was the comment of a person with knowledge of the matter. But what important over here is that while a Google purchase of Waze may not be blocked by U.S. regulators due to its potential threat to make changes in the competitive landscape, it could still end up being studied, said Allen Grunes, who is a former antitrust attorney for the Justice Department at Washington.
Another comment is that Incorporating Waze technology into Google Maps may result into the following outcome that it would, “complement a product they already have and make it better, as opposed to representing a leading product they already compete with,” Grunes said in an interview. The business contract “could get looked at anyway by regulators because if Google gets it, it’s quite possible Facebook will be in there complaining, even if there isn’t a real antitrust problem.” Afterwards, Grunes associated the transaction with Facebook’s acquisition of Instagram, which time-honored a long-drawn-out review by the U.S. Federal Trade Commission in advance the agency approved that deal in August. The Justice Department, which has looked at Google’s acquisitions for the previous two years while the FTC piloted a broad antitrust probe of Google’s business performs in search, would also probably be the agency to look at a Waze purchase, Grunes said.