Facebook Inc (NASDAQ:FB) is reportedly in talks with Waze, an Israeli mobile satellite navigation start-up, to acquire it for the price of $800 million to $1 billion, according to business newspaper Calcalist. The talks are in closing stages and both companies have signed a term sheet, according to Calcalist. The bid is being weighed.
Waze has expanded its user base in the last year to 45 million. In the month of March, a total of 1.5 million users downloaded the free mobile navigation app according to Calcalist.
Waze is a startup company, which with the help of satellite signals from smartphones of the members, generates maps and traffic data. These maps and traffic data are conveyed to other users. Waze with the help of these signals is able to generate real time traffic information.
Facebook & Waze
In October 2012, Facebook Inc (NASDAQ:FB) entered into a partnership with Waze under which Waze came up with the updated version that allows users to share their drive among Facebook friends.
If the deal is finalized, it would be the largest acquisition of Facebook Inc (NASDAQ:FB) after Instagram acquired in 2012 for almost similar sum.
Rumors Surrounding Waze Acquisition
Many a times before there have been rumours of a Waze acquisition. In the start of 2013, the talks were around that Waze is in discussion with Apple Inc. (NASDAQ:AAPL) for an acquisition, but there was nothing concrete.
There were also speculations that Microsoft Corporation (NASDAQ:MSFT) is looking forward to acquire Waze. However, the latest report from Calcalist, of Facebook Inc (NASDAQ:FB) in talks to acquire Waze is the most authentic one.
Earlier, Facebook Inc (NASDAQ:FB) acquired cloud service company Parse. With the acquisition, the company aims to add one more feather to its crown by becoming a company providing business service along with consumer social network. With the help of Parse, users design mobile apps easily by getting backup of hosted end infrastructure.
If the deal is concluded, it will be the third one for Facebook in Israel. Prior to Waze, Facebook Inc (NASDAQ:FB) acquired Snaptu in 2011 for $70 million and Face.com in 2012 for $60 million.
There was no comment released from the officials of Waze.