Internet company Google said to consider buying Israeli startup Waze engaged in the development of mobile mapping and navigation technologies and estimated at about $1B, Bloomberg agency reports citing informed sources.
The world's largest social network Facebook has been in talks to purchase Waze for $0.8B-$1B for about six months. Facebook entered into a partnership with Waze in October 2012 when the startup released an updated version of its application allowing users to share information on road conditions with their friends in the social network.
If the information about Google’s interest confirmed, the two giants of the Internet market will compete for Waze, which can lead to the growth of its appraised value. At the same time, the startup can remain independent and raise money from venture investors, the agency’s sources say.
Waze’s user base increased by 3 times to 45M people last year. In turn, Google considers its mapping service Maps, as well as its mobile version, as a priority. The deal between the companies will potentially allow Google to use Waze’s technology, add social features to its maps and reduce the threat of competition.