Google's acquisition of Israeli mobile navigation app vendor Waze is going to get an anti-trust examination by the FTC. Earlier this month, Mountain View's acquisition team flipped open the wallet to the tune of $US1.3 billion for the social map app, its sub-$US70 million revenue, and its claimed fifty million users. When the …
Ok. Let's end this now. Google bought Waze for 1.3 billion. Does anyone think the people at Waze would have said "no" to 1.4 billion from Apple or MS or anyone else? Apple has a competing product and certainly had enough cash to make a higher offer but they chose not to.
The only way this is anticompetitive is in the same sense any acquisition is - it removes the acquired firm from the market.
... the sock puppet of Microsoft complained that one of Microsoft's rivals were buying a company.
Well there's a surprise...
Waze may have been fairly irrelevant in terms of market share compared to Google maps; but it might have been useful to help a competitor. I am not sure if defensive acquisitions count as anticompetitive behavior, but it can be easily argued that Google was more interested in stopping Apple/Facebook/Microsoft from having Waze than they were interested in having Waze.
Let's just hope they don't kill it.
Waze business model
Was to be bought out.
It was never a competitor to the otthers (I've used it), so much as a useful extension to existing ones.
I was lucky enough to meet Di-Ann Eisnor (one of the VP's) at a TechHub event when they officially launched here. She certainly outlined a decent long-term strategy which included providing traffic data to tv & radio stations. Also more importantly she outlined ways that the Waze data could be used in "smart city" projects but with a very low cost compared to installing hardwired traffic monitoring kit - something that got plenty of attention from Arup and Skanska (I spoke to reps from both and there were probably other similar companies there).