Facebook close to acquiring navigation app Waze so it can sell ads while you drive

Facebook is reportedly very close to buying crowdsourced navigation app Waze for anywhere between $500 million and $1 billion.

The Facebook rumour mill is churning with reports that Zuckerberg and company are inching closer to sealing the deal on a purchase of the popular crowdsourced navigation app, Waze.

Waze has been the subject of a bidding war between both Apple and Facebook over the past year. The Israeli startup reportedly turned down a US$300 million bid from Facebook only six months ago, and a $500 million bid from Apple just this past January.

According to several reports in the Israeli and American press, Facebook is in final negotiations to sealing the deal that may be worth anywhere between$500 million and $1 billion, depending on whose sources you believe.

The Waze MacGuffin

Waze would prove to be a valuable acquisition for both Apple and Facebook. From Cupertino's point of view, the popular app, which currently boasts 47 million active users--double what it had just last year--could help erase the stain of the great Apple Maps fiasco of 2012 and give the company independence from mobile rival Google.

For Facebook's part, Waze would be a way to extend its social network into the automotive space. At the New York International Auto Show in March, Doug Frisbie, Facebook's head of automotive global marketing mentioned Waze by name as a prime example of the merging of the social web and automotive mobile experience. While that all sounds nice and good, FB is a for-profit enterprise and Waze would provide the company a new way to sell ads while you are in transit.

In the mobile maps game, Waze has secured a comfy second place only to Google in markets throughout Europe and North America. However, in developing nations such as Brazil, Uruguay, and Indonesia, the app has surpassed the mighty Google Maps by far. A rising segment of the globe's population has skipped the desktop rungs of the digital ladder and bolted full steam into the mobile age. An app like Waze can be a new bridge for big tech companies looking to court this rising class.

If the Waze acquisition goes through, it will be Facebook's third major Israeli acquisition in as many years. In 2011, FB snapped up social bundling app Snaptu for $70 million, and in 2012 it purchased facial recognition software firm Face.com for $60 million. In both those instances, Facebook relocated these companies and employees to headquarters in San Francisco, New York, and London.

According to reports from Forbes and the Israeli paper Haaretz, one of the last sticking points is overcoming Waze's wish to keep the R&D shop in the middle east.

If all the rumours are to be believed (and they're all still rumours at this point), we should see if the two techy lovebirds can make it official in very the near future.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

People in vegan houses shouldn't throw bacon

Picture this. You’re at a Gourmerican burger joint chomping a cheeseburger, when an outspoken vegan friend starts preaching that you’re killing the planet. Last week, that same vegan downed a pricey glass of pinot before their flight to a far-flung destination, armed with their strongest mossie repellant and first aid kit. Anything amiss?

Abbie Love

Strategist, Ikon Communications

The role of the CMO is evolving: Are you keeping up?

My (amazing) vacation in the Galapagos Islands earlier in the year got me thinking about Charles Darwin and his theory of evolution. What does this have to do with the role of today’s CMO, you ask? Plenty.

Sheryl Pattek

Vice-president, executive partner

Getting your business ready for the Entrepreneurial Consumer

We all know the digital revolution has completely transformed the way consumers are interacting with brands, and that a lot of businesses are finding it hard to catch up. One way to closing this brand gap is to understand consumer behaviour and build a brand experience that meets these new needs.

Pip Stocks

CEO and founder, BrandHook

It’s excellent aiming to resurrect the complete within the hearts and minds of connected customers, moreover because the terribly relevan...


CMO Interview: How Kodak’s global CMO is bringing the brand back from the brink

Read more

Great to see ActiveCampaign's growth funded with some serious money.As a platform, it's up there with the usual suspects in terms of feat...

Lawrence Ladomery

CMO's top 10 martech stories for the week - 13 October

Read more


Kerry Edwards

Open Colleges taps into social for better student interaction

Read more

Or just go to sites like www.shopsthatshiptoaustralia.c... and others and be sure that the stores will send to where you live :-)


Why online shopping is like dating – RedBalloon CEO

Read more

Personalisation is the key. Customers demand a very relatable and well defined CX where the sincerity and understanding of their disposit...

Hitesh Parekh

In pictures: Improving cutomer experiences through smart personalisation

Read more

Latest Podcast

More podcasts

Sign in