Google has acquired Waze for $1.1 billion


Google has sealed the deal with navigation and social traffic app Waze for $1.1 billion, following months of rumours from various tech news agencies about the deal and who was bidding for the Israeli based startup.

Waze will stay open for business, as many large deals for mobile and web services do nowadays. With a growing community of almost fifty million, we can see why Google would want to keep those customers in place.

Questions have been raised as to why Google would purchase a mobile traffic app with lacklustre revenue, but this brings us back to the debate over Yahoo’s purchase of Tumblr.

It is less about the revenue model, which will scale and change overtime and more about the community, usage and information being poured into the service on a regular basis.

We believe Google will integrate some of Waze’s social traffic tools into their own mapping service and in return Google may offer better revenue models within Waze’s service.

Source: TechCrunch