Facebook seems to be all geared up to close yet another billion-dollar acquisition deal in an attempt to strengthen its mobile platform. The social media giant is in talks to buy the GPS company Waze for $800 million to $1 billion, Israeli daily newspaper Calcalist reports.
The negotiations between the social network and the Israeli start-up Waze Mobile apparently began six months ago. It is said that both companies have signed a term sheet, and that Facebook is doing due diligence.
Waze is a free social GPS application featuring turn-by-turn navigation app that uses crowdsourcing to gather real-time conditions on the road. In April 2013, the app had a base of 44 million users.
Waze is already a part of Faceobook. Waze enables its users to share their drive with Facebook friends. It makes sense to why Facebook is interested in acquiring Waze. If the deal between the two companies goes through, it will be quite interesting to see how Facebook plans to incubate itself in the GPS space.
Last year in April, Facebook acquired Instagram for a whopping 1 billion USD and it isn’t surprising if Facebook spends the same on Waze. The company also acquired two Israeli startups: Snaptu in March 2011 for $70 million and Face.com in June 2012 for $60 million.
Waze has been in the subject of acquisition talk for a while now. Six months ago it was reported that Apple was interested to acquire the company for $400 million and plus $100 million in incentives. Waze tried to push the offer to $750 million, however, the deal didn’t pass through. The only reason why Apple wanted to buy Waze is pretty obvious – improve its own, much criticized Maps product.