An anonymous source has apparently told TechCrunch that Apple Inc. (AAPL) is negotiating to purchase the social navigation app Waze. The app maker reportedly wants $750 million, but at this point Apple is only offering $500 million.
Apple Inc. (NASDAQ:AAPL) is reportedly making a move to purchase the app maker Waze, according to TechCrunch. The publication cites anonymous sources who say Waze wants $750 million, but thus far Apple Inc. (NASDAQ:AAPL) is only willing to pay $500 million—with $400 million of that in cash plus $100 million in earn-outs, which would be based on performance.
More than 30 million people use Waze to share real-time information about traffic as they drive. Waze compiles that data and helps steer drivers clear of accidents, construction and any other road problems that might be in their way. The social navigation app also provides navigation assistance using the information collected from other users of the app.
Apple Inc. (NASDAQ:AAPL) is likely looking at buying Waze as part of its plan to save its catastrophic mapping app, which was part of iOS 6 and hated by iPhone users the moment they started using. A combination of factors, like a lack of features and just bad directions sent iPhone users back to the Google Maps app the moment it became available in the App Store.
The negotiations between Apple Inc. (NASDAQ:AAPL) and Waze are the latest in a round of speculations about ways to fix Apple Maps. Last month some analysts predicted that Apple would try to purchase TomTom, which it had partnered with to produce Apple Maps. Apple had also partnered with Waze for its mapping app, and it was the only partner out of that disaster to actually increase its market share after the Apple Maps fiasco.