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Google is said to be acquiring Waze for $1.1b

June 10, 2013 - 20:20 By Korea Herald
An automobile driver uses Waze Inc.’s map software in London. (Bloomberg)
Google Inc. has agreed to acquire map-software provider Waze Inc. for about $1.1 billion, a person with knowledge of the deal said, seeking to keep competitors such as Facebook Inc. from eroding its lead in mobile-navigation programs.

The deal for Waze, based in Palo Alto, California, may be announced as early as tomorrow, said the person, who asked not to be named because the plans are private.

As consumers shift toward 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, said Greg Sterling, an analyst at Opus Research.

Waze Chief Executive Officer Noam Bardin didn’t immediately return a call seeking comment. Paul Solomon, a spokesman in Israel for Mountain View, California-based Google, declined to comment.

The acquisition was reported earlier Sunday by Globes, an Israeli financial daily. Globes listed the price as $1.3 billion.

The deal would let Google, owner of the world’s most popular search engine, eliminate a threat to its home-grown navigation app.

“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 last month.

The purchase would also keep a growing provider of mapping software away from other companies, including Facebook, the world’s largest social network. Facebook, aiming to bolster its own mobile strategy, offered Waze almost $1 billion last month, two people familiar with the matter said in May. (Bloomberg)