The search giant has reached a deal to purchase traffic app Waze. Here are five fast facts you need to know.
1.The Deal Is Rumored To Be Worth 1.3 Billion
According to the New York Times, Google closed the deal to purchase social traffic app waze. Rumors of the acquisition began early Monday with the search giant making it official earlier on Tuesday. While Google's blog didn't reveal the exact price, a source with knowledge of the situation said the deal was worth 1.3 billion.
2. Waze is a Social Mapping App
This Israeli-based company created a social-based mapping service that provides the best maps and alertnate routes based on real-time traffic situations. The system allows users to report accidents and other road hazards to provide the community a unique way to plan their routes. With offices in Palo Alto and total staff of 100 members, the founder released a blog post saying that everything would stay relatively the same. The key factor of this deal was that the CEO wanted to keep a focus on the product. He felt an IPO would have eliminated their need to retain their focus on the essentials of the program. According to this entry, Google was the best partner for the firm.
3. Why Google Wants Waze
According to CNBC, map services are one of the top five most used apps and a key to retaining mobile customers. While Google already has its own guidance system,Waze also has 47 million users in its database so this would add to the audience reach by the search giant. Time.com feels that this is a great competitive move which gives it an edge over Apple. With the most recent announcement of iOS-integrated car service and it's awful map app, Google could revolutionize their travel capabilities.
4.Waze's Early Backers Get Huge Pay Day
Once the deal was finalized, early investors in the social media company received a hefty pay day. GigOM reported that Google had repaid the companys investors. Receiving an estimated $100 million were Magma Ventures, Blue Run Ventures and Vertex Ventures. Surprisingly, GigaOM indicated Microsoft may be a big winner in this since it was rumored to be a strategic investor. Horizon Ventures and notable VC firm Kleiner Perkins Caufield & Byers were the last to get their return on investment. They obtained around $250 million according to sources.
5. Waze Could Benefit Google
This new merger has a lot of potential.The Wall Street Journal reports that Google wants to increase personalization through Google+ accounts. The large audience Waze has can support this. While the deal with Apple fell through, Google's gain is increasing its ability to become more social. A possible antitrust case can prevent the companies from combining but that does not seem likely. Google is starting to gain a monopoly on alot of essential services. The search engine has a strong new travel function but the newest offering from Apple for cars could curb the competition.