The social media community has been abuzz lately after Facebook's recent annoucement that it intended to acquire navigation and map services for its users. This acquistion, some say, points to Facebook's focus shift towards more mobile products.
What is being touted as the company's largest acquisition to date, the social networking company says it has only signed a term sheet at this point with the Israeli navigation company Waze. The expected pricetage for the acquisition? $1 billion.
The two companies have been in talks for the past six months with a few news sites reporting that the two have hit a stand still this month in their negotions. According to some sources, Facebook has requested the liquidation of Waze's activity in Israel and has asked that all of its employees relocate to Facebook's California headquarters.
Although it's not clear whether this major request will be a complete deal breaker, some business experts point out that it could be a desirable move for the startup navigation company. It's purchase would trump Facebook's $715 million acquisition of Instagram and give Waze shares in one of the most popular social media tools in use right now.
Some critics have chided Facebook for its push for maps and navigation systems, saying that the company is attempting to force out Google as a competitor in this area. Although its not clear whether this is really the case, there is little doubt in some people's minds that this could very well happen. As for Texas residents, we will simply wait until all of the paperwork has been signed before we make any assumptions about the future of these two companies.
Source: Reuters News, "Facebook in talks to buy Israel's Waze for up to $1 billion: report," Tel Aviv, May 9, 2013