A new report published on Bloomberg reveals that Google may plan to take over Waze, a small mobile mapping and navigation company. The software company is currently competing against Facebook, which appears to be interested in the navigation company, too.
The founders of Waze were never expecting two giant companies to bid for its services and yet, they have been assaulted by numerous offers from Google and Facebook in the past month. The Android maker revealed on Thursday that they are willing to pay $1 billion to take over the company, a huge sum of money for a takeover, in analysts’ opinion. Yet, rumor has it Google is interested in making an offer that Waze cannot refuse because Facebook is willing to sign a deal, too. Waze’s representatives were telephonically contacted by reporters at Bloomberg, but they have only stated that the startup company is not willing to make any comments in relation to the rumors.
The startup company was founded in 2007 after creating a navigation application, which enables users to guide themselves through traffic using directions from other drivers. The app has been a success ever since it was first released because it is the only program to build maps using information from other drivers. Waze is currently used by 47 million people in 193 countries which explains why Google is very interested in signing a deal with the company.
Analysts estimate that Google perceives Waze as a threat considering that the startup is one of the favorite apps among smartphone users. The software giant may be willing to buy Waze to improve the quality of their mapping services or to prevent Waze from becoming more popular than their own app. The fact that Facebook plans to launch their own mapping product is another reason for Google to bid as much as possible for Waze’s services. Negotiations are early-stage as Waze hasn’t decided yet whether they want to sell or get more funding to continue their work.