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

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in