Google is a company that has purchased many other companies to become one of the most dominate in the industry today. Google purchased YouTube years ago and not only do they pay those who are monetized, but YouTube has become the most popular video sharing and viewing website. Well, Google again has acquired a company named Waze, and 15 other companies the first quarter of this year. Waze leverages a community of drivers to find the best routes through traffic.
Waze is essentially a GPS-based, real-time service that provides turn-by-turn navigation. It relies on crowdsourced route details, including information about traffic, accidents and more. Google attempted to purchase Waze in June after discussions between the mapping company and social networking giant Facebook fell through. According to reports, Waze was not willing to relocate its Israel-based engineering team to Facebook’s headquarters.
Apple was also in negotians to buy Waze, but that did not happen. Some of Apple’s services such as Maps have been nearly useless since their launching, and in order to repair them, Apple has tried to purchase other companies to fix its own product. Both Waze and Wavii were companies that Apple originally wanted to purchase and yet Google was able to beat Apple both in both instances.
As one of the leading navigation applications, Waze would have helped Apple as it tries to improve Maps for iOS 7, but instead the company had to settle for HopStop. Analysts are now suggesting that Apple begin to purchase more companies in the same way as Google, in order for the company to use up its $100 billion in savings. Until Apple begins to acquire more companies or put higher bids in, Google will continue its streak of surpassing Apple’s software.
Google spent almost $966 million in acquisition of the Waze mapping app the company revealed on Thursday (July 25). This price is in a financial quarterly report that Google filed with the Securities and Exchange Commission Thursday. Apparently, the Web giant spent $847 million in goodwill, $188 million in intangible assets, and then minus $69 million in net liabilities. It was previously speculated that Google paid a little more than $1 billion for Waze.
In addition to spending $966 million on Waze, Google also completed 15 other acquisitions in the first half of 2013, including buying Makani Power, Behavio, and Wavii. For these other acquisitions, the Web giant spent $344 million. The tally for all 16 of the acquisitions, which includes Waze, comes to $1.31 billion.
“In June 2013, we completed our acquisition of Waze Limited (Waze), a provider of a mobile map application which provides turn-by-turn navigation and real-time traffic updates powered by incidents and route information submitted by a community of users, for a total cash consideration of $966 million,” the filing by the Internet giant reads. “The acquisition is expected to enhance our customer’s user experience by offering real-time traffic information to users’ daily navigation needs.”
Analyst Gene Munster announced that Google and driverless car makers will be able to profit off these automobiles before the end of the decade. Although Google will likely not make many cars itself, all of the hardware and software licenses, which could easily incorporate Waze, will be licensed to car companies.
The automated car industry is expected to be worth $200 billion, and if Google’s navigation software for driverless cars is the best money can buy, then the company will be the major beneficiary when these cars begin to come onto the market. As analyst Jeff Kagan states, “It will be years before we know whether it was worth it or not.”
The Waze community is over 28 million strong and growing! You can download Waze free in over 25 languages from the iPhone Appstore and Google Play. Start saving valuable time and gas money, and make driving just a little more fun!
Forrest L. Rawls