Facebook Acquisition Talks With Waze Crumbled
After months of negotiations with Mapping Service Waze, Facebook is no longer in talks to acquire Waze. The Israel-based social mapping service Waze is one of the top leading mobile applications provider for Android and Other mobile OS.
The two companies were in talks for a possible acquisition. Several companies took part in this acquisition thing, but only facebook came up with the best offer that could have reached $1 billion. If the acquisition would have succeeded, facebook may had the chance of getting the edge of target advertising, which could directly ad more revenue to the big social monster.
But the talks dissolved, and according to the sources, the reason behind the dissolution is the conflict over whether team Waze – which is based mainly on Israel – would move to the United States and be folded into Facebook’s Menlo Park, California, headquarters, among other reasons.
But most strikingly, representatives of Facebook and Waze declined to comment. Waze mobile app seemed a logical Facebook acquisition target, as Waze relies on crowdsourced data traffic, accident reports and the traps of the police of its 40 million more user base to help drivers navigate better travelling by road. While competitors offer both services of maps from Google and Apple, Facebook currently does not offer any type of application maps.
And the purchase of a popular maps service could have been otherwise for Facebook to push to the phone, complementing the widely adopted social giant photography and messaging applications.
In addition, Waze was built as a social application “from scratch” – a philosophy especially Facebook defends – instead of as an application of maps with a social layer, slapped on top of it. In essence, it fits with the vision of a social service of Facebook. So it would not be impossible that the two companies to find out the terms that make sense for both parties.
It has been widely speculated that Apple was in talks to acquire Waze, which would also make sense given the company’s missteps with its own mapping app.