Facebook in talks to buy crowdsourced traffic app Waze for up to $1 billion

Facebook in talks to buy crowdsourced traffic app Waze for up to $1 billion
Facebook has been known to make big time acquisitions. For example, the company bought Instagram in a deal that started out at $1 billion, but dropped to about $750 million when the acquisition closed, due to the drop in Facebook's stock. The shares were used along with cash to purchase the photography based social network. And while Facebook was roundly criticized at the time for making the purchase, the company might end up getting the last laugh considering how hot Instagram has become. Now if only Mark Zuckerberg could figure out a way to monetize the app.

What brings all of this to mind is that Facebook is rumored to be close to whipping out the ol' checkbook again, ready to write a huge check for another hot app. This time, Facebook is said to be in advanced talks to purchase crowdsourced traffic app Waze. The talk is that the deal will end up costing the social networking site anywhere between $800 million to $1 billion. According to a published report, a term sheet has been signed and Facebook is conducting due dilligence on Waze, which uses signals from subscribers' phones to generate real-time traffic information. The two sides have purportedly been discussing a deal for 6 months now. Back in January, rumors that Apple was going to purchase Waze in a bid to improve its beleaguered Apple Maps was quickly shot down.

Waze has 45 million members, triple the amount from a year ago. In March alone, $1.5 million new members were added to the roster. Facebook and Waze have been partners since last October when Waze released an updated version of its app that allows its members to share a drive with their Facebook friends.

source: Reuters

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8 Comments

1. DrMenschik

Posts: 9; Member since: Mar 02, 2013

$1.5 million new members.... dat price :D

2. TheMan

Posts: 494; Member since: Sep 21, 2012

Great, FB can screw up one of my favorite apps on Android -- with the probable result that Waze reports my whereabouts on my profile.

3. buccob

Posts: 2979; Member since: Jun 19, 2012

NOOOOOO Google you are dumb not to have tried this.... You should have killed Buzz and buy Waze long time ago... imagine how your navigation would have been with crowdsourcing... Waze is the most popular navigation app in my country... since Google does not even offer Navigation here...

4. Daftama

Posts: 641; Member since: Nov 03, 2012

Google is the best nap service out there

5. Rayvelynn

Posts: 124; Member since: Jul 05, 2012

Zuckerberg you are doing too much, First Instagram now Waze. You are a thorn in my spine. As if you already don't have enough information to spy on people.

6. mrfamous1

Posts: 27; Member since: Apr 25, 2012

Great Companies buy smaller great companies to stay relevant!!!

7. Stuntman

Posts: 843; Member since: Aug 01, 2011

I'm a little torn about this news. I love Waze and a Facebook aquisition will have the potential to increase Waze's popularity which would make it beneficial to me as a Waze user. However, I am wary that Facebook will screw with it in such a way that would annoy me.

8. MC1123

Posts: 1256; Member since: Nov 12, 2012

i thought apple bought this company... but pretty neat that waze is available to iOS, Android and BB10! no WINDOWS PHONE!!!

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