TomTom shares rise as speculation mounts Apple might make a move

TomTom shares rise as speculation mounts Apple might make a move
Analyst at Rabobank who covers Apple issued a research note to clients that there is a 30% chance Apple might just snatch TomTom and roll all of its significant navigation expertise into the Maps app.

Samsung might be having fun with the nascent Apple navigation software Down Under, but there rumors flying that Apple has already booked TomTom engineers for collaborating on the Maps improvements to speed up the process, and from there there is only one step into acquiring the whole company, or shelling for some kind of a partnership.

TomTom shares rose as much as 7% today on the news, and are up more than 30% this year. It provides some of the best mapping and navigational services and apps out there, so Apple bagging it would be a huge boost for its own Maps ecosystem at the relatively cheap $1.2 billion market cap TomTom commands now.

source: Bloomberg

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9 Comments

1. Insignificant

Posts: 192; Member since: Sep 22, 2012

I think iOS maps are good enough. Neither do Apple. No big threat to Google Maps or Nokia Maps yet. And thanks to Mobiles, TomTom would probably die in a few years so...

3. darkkjedii

Posts: 31306; Member since: Feb 05, 2011

Needless comment dude. Y must it b a threat, war, or battle? All apple is trying to do is what google did over time, and that's make it mapping service better... Oh and one more thing, google acquired outside help too buddy.

4. Insignificant

Posts: 192; Member since: Sep 22, 2012

'Y must it b a threat, war, or battle?' Because it's Apple.

5. darkkjedii

Posts: 31306; Member since: Feb 05, 2011

Yeah ok dude

2. theoak

Posts: 324; Member since: Nov 16, 2011

Tom Tom combined with Apple's vector graphics ... lots of potential.

7. darkkjedii

Posts: 31306; Member since: Feb 05, 2011

Oak I agree dude. Tons of potential.

6. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

If Apple acquires TomTom, things are more f*cked up on the iMaps project than Apple is letting on.

8. TheMan

Posts: 494; Member since: Sep 21, 2012

So, TomTom's current market cap, about US$1.1 billion, equals about 1 week of Apple's cash flow. Garmin's is $8.1 billion. I could throw in a lot of numbers, but basically it appears to be cheaper to buy the capability at TomTom -- a current development partner -- than reinvent the wheel, probably with less risk.

9. lsutigers

Posts: 832; Member since: Mar 08, 2009

I would have thought Apple would prefer to pick up Garmin over TomTom as they are a US company versus a European company. Overall, Garmin makes better products and has much more powerful engineering capabilities than TomTom, such as marine and aviation equipment which are very good, refined and easy to use. Clearly Apple doesn't have much use for those extra Garmin divisions to pay more for them so it makes sense to pick up TomTom.

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