Multiple reports suggest
Facebook is close to buying Israeli navigation startup Waze for $1 billion. But Israeli publication Ynet now says the deal has been stalled. The reason: Waze’s founders don’t want to move their development team to Silicon Valley.
“Calcalist has learned that following two intensive weeks of talks, both parties remain unyielding,” Assaf Gilad writes. “Facebook conditioned the deal on the liquidation of Waze’s activity in Israel and the relocation of some of its employees to Facebook’s San Francisco headquarters.”
This isn’t the first time Waze has been caught up in $1 billion acquisition rumours. Earlier this year, there were false reports that Apple would buy Waze for the same amount.
But if Facebook is actually mulling over the deal, here’s why industry sources think the acquisition could make sense. As told to Business Insider’s Nicholas Carlson:
- “Facebook is buying Waze because each of the major tech companies want to own a mapping service. Microsoft, Google, and Apple own one. Now, so would Facebook.”
- “Facebook is buying Waze so Facebook Home doesn’t have to punt people over to Google Maps.”
- “The simplest and most important reason is that Waze is an awesome, quickly-essential-to-users mobile app, and mobile “real estate” is what Facebook desperately needs.”
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.