Google is reportedly mulling over the purchase of crowd-sourced map app provider Waze, which could potentially launch a bidding war with Facebook who has also an interest in the mobile navigation app. Analysts are divided over Google's intentions with Waze, with some suggesting they are trying to delay Facebook from sealing a deal with Waze and want to increase the already hefty $1 billion price tag.
Google is one of multiple companies negotiating to buy Waze, Businessweek noted on Friday, citing unnamed sources. Earlier this month, an Israeli business daily Calcalist and their sister publication Ynet reported that Facebook was in "advanced talks" to buy Israeli-based start-up Waze for between $800 million and $1 billion. However, according to the latest report from Businessweek, Waze is in talks with "multiple parties" concerning an acquisition, and is also considering whether to raise venture capital and remain independent.
Waze produces a navigation app which has a large social element, where users have the ability to adjust and improve the accuracy of the maps themselves as well as check in to report traffic events like congestion or a police stop. The tool lets users share real-time traffic information, including updates about construction, traffic jams, speed traps and accidents.
Facebook will most likely integrate the technology into its mobile offering, allowing users to share real time data with their social circles. However, industry analysts are divided on what Google will be using Waze with some saying its to boost its current Google Maps offering, while others believe the tech giant is simply trying to stall Facebook negotiations, and to boost the Waze price.
Google's likely goal is to "disrupt the deal and force Facebook to pay a higher price than they would have paid. Google doesn't need another mapping service, as was demonstrated at Google I/O. There's no love lost between Facebook and Google . This is just one tactic in the high-stakes world of the Internet," Patrick Moorhead, an analyst with Moor Insights & Strategy, according to Computerworld.
"Google already has real-time traffic capabilities by tracking everyone who uses Google Maps while driving," Moorhead added. "The only thing Waze brings to Google is driving gamification, where drivers note accidents and police. That's not worth $1 billion. If you are Facebook without any real-time mapping feature, then that is a big issue."
