Israel Matzav

Google buying Waze for $1.3 billion

Good things come to those who wait. Waze, which turned down a billion dollar offer to be acquired by Facebook ten days ago, because Facebook wanted to move the company out of Israel, will apparently now be acquired by Google for $1.3 billion.

Sources inform ''Globes'' that Google Inc. will acquire Waze for $1.3 billion. The acquisition of the Israeli navigation app and traffic report start-up will be completed after months of reports that Waze would be sold to either Google or Facebook Inc.

Ra'anana-based Waze has almost 50 million users. This is a big number for an Israeli company, which probably helped it achieve the hoped-for exit.

Reports about a possible sale of Waze are not new. Last year there were reports Apple wanted to buy Waze and in late August 2012, it was reported that Facebook was in talks to acquire the company. According to some reports, Facebook representatives arrived in Israel to meet Waze executives, but no deal was reached in the negotiations, apparently because of the price tag.

Another reason was that Waze insisted that its Israeli employees should continue working in Israel, which Facebook did not accept. Google has already made two acquisitions in Israel, and it has an office here, in contrast to Facebook, which closed most of the companies it acquired, including Israeli start-ups. Both previous Israeli acquisitions by Google were modest. Google acquired personalized Website gadget developer Labpixies for $25 million and interactive video-clip developer Quiksee for $10 million. Both acquisitions were in 2010.

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Waze was founded in 2009 and in October 2012, it announced a $30 million financing round from Horizons Ventures, Kleiner Perkins Caufield & Byers, and iFund. The company has raised $67 million to date from Magma Venture Partners, Vertex Venture Capital, Qualcomm Ventures, BlueRun Ventures, Microsoft Corporation (Nasdaq: MSFT), and the investors in its 2012 financing round. The deal will turn some Waze founders into multimillionaires. CTO Ehud Shabtai will earn $78 million, president Uri Levine will earn $38 million, VP R&D Amir Shinar and his brother Gili will earn $65 million.

Waze told "Globes" "no comment," and Google said, "We don't relate to rumors and speculation."

Those of you who really want to boycott Israel should not use Waze. And if you think you have the next Waze, please call me. I'd be interested in representing you.

Labels: Apple, Facebook, Google, Israeli high tech

posted by Carl in Jerusalem @ 8:24 PM