Facebook (FB) May Acquire Waze for $1 Billion
Facebook Inc (NASDAQ:FB) is in talks to acquire Waze for between $800 million and $1 billion, according to Israeli daily newspaper Calcalist. Waze is a social mapping mobile application that relies on crowd-sourcing for data. Negotiations between Facebook and Waze reportedly started six months ago. Calcalist reports that the talks are in the due diligence and a term sheet has been signed. Waze has 47 million users as of this month.
One of the main issues in the talks is whether to keep Waze based in Israel or to bring the team to Facebook’s headquarters in Menlo Park, California. Facebook brought two other Israeli companies to their headquarters in the past, which was Snaptu and Face.com. There has been several companies that have courted Waze for an acquisition including Apple.
An acquisition of Waze makes sense for Facebook because the company’s mobile growth has been soaring. There are now over 751 million monthly Facebook mobile users, which is an increase of 54% year-over-year. Facebook Home has also been downloaded nearly 1 million times on Google Play. The company also launched several new mobile features this year like Chat Heads. Facebook subsidiary and mobile photo social network Instagram also has over 100 million users.
Waze has raised a total of around $67 million from Kleiner Perkins, BlueRun Ventures, Vertex Venture Capital, Magma Venture Partners, and billionaire Li Ka-shing.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry