This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Google Was Smart to Buy Waze (Update 1)

Updated from June 11 to include additional analysis in the fourth paragraph.

NEW YORK ( TheStreet) -- The battle for Waze is finally over, and it's Google (GOOG - Get Report) who comes out looking like a winner whereas Facebook (FB - Get Report) and Apple (AAPL - Get Report) appear to have lost an opportunity to outpace their chief rival.

Waze, the Israeli-based geo-location said it was being acquired by the Mountain View, Calif.-based Google though terms were not disclosed. (It's been reported the deal was worth between $1.1 billion and $1.3 billion). Google already has a very strong presence in mapping with its popular Google Maps application, but Waze brings a whole new level of data to Google, a company that thrives on data crunching. Waze is powered by its 50 million users, who update in real-time, traffic, accidents and other road conditions useful for drivers.

With the acquisition, Google not only gets the maps aspect, but since Waze is powered by its users, Google can continue to expand its Google+ social network, tying in more people to its products and services. It allows Google to strengthen its hold in mapping, while keeping Facebook and Apple at bay in maps.

Google is essentially a giant venture capital company backed by the advertising business. Acquiring Waze allows it to continue to strengthen the advertising business via geo-location. If Google knows where you are, it could target an ad for a restaurant or an activity close by, especially if you are stuck in traffic.

Waze CEO Noam Bardin wrote in the blog discussing the acquisition that the company had evaluated many options on a exit strategy, "and believe Google is the best partner for Waze, our map editors, area managers, champs and nearly 50 million Wazers globally."

Maps have become an important aspect for technology companies to have with data becoming increasingly essential as companies try to learn more about their users. Whether you like it or not, Google knows your search history, what you're looking to buy and with Waze, can now better serve you ads based on where you are. That's a large reason why Facebook was also looking at Waze.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs