Google Close to Buying Waze for $1.3 Billion

By Gilbert Falso :: 12:47 PM

According to Israeli media reports, search giant Google is very close to acquiring social mapping and navigation app Waze for $1.3 billion.

The app, which allows drivers to track their trips in real time, and share road and speed trap information with other Waze users, has been courted by both Facebook and Apple in recent weeks. Early speculation focused on a possible Facebook purchase for a slightly lower $1 billion price tag. That deal, is apparently off the table at this point.

A Google-Waze combination makes good business sense, as Waze would benefit from Google’s advanced mapping technologies, and Google would inherit a large and dedicated user base from Waze.

At this point, media in Israel are claiming the only sticking point in inking the contracts is the decision for Waze’s top management and development teams to remain in their native Israel. A move to the U.S. was the breakdown point for Facebook negotiations in May, according to some sources.

Waze has raised a good stockpile of venture capital – $67 million from investors like Blue Run Ventures, Magma Venture Partners, and Kleiner Perkins Caufield & Byers. The app boasted 90 million user reports sent in during 2012, across a combined 10 billion miles tracked.