Google Acquires Waze App for $1.3 Billion

Google has reportedly reached a deal with popular crowd-sourced map app maker Waze. The acquisition marks the end of months of speculation and negotiation over who would get their hands on the Israeli-based GPS firm.

Based on report, Google bought the Waze application for $1.3 billion according to PC Mag. The app operates as a GPS application capable of giving standard turn-by-turn directions to your location. However, what makes Waze so popular is the connectivity it offers its 50 million users. While driving, the app allows you to see other Waze users on the road, flag traffic stops or police traps and share any other traffic information that might be relevant to commuters in real time.

The deal comes with an addendum that the company can continue to operate out of Israel. This was the sticking point that Facebook could not get over when it was in negotiations with Waze for a similar billion-dollar deal. The social media titan's talks to get a hold of the company ended two weeks ago when negotiations fell through over this issue. Facebook would have loaned its millions of subscribers to the Waze franchise but simply would not let the company continue to operate outside of California.

Google, who already has a great deal of experience with mapping technology thanks to Google Maps, will benefit from Waze but simply doesn't have the same social media backing Facebook users would have had from an acquisition. This has caused many insiders to wonder if Google is dropping the $1.3 billion on the app and allowing them to stay in their home country simply to ensure its competitor Facebook does not get its hands on the app.

Google has yet to confirm the news of the purchase, but Israeli-based newspaper Globes reported the news Sunday. Waze was first established in 2009 and has since ballooned into one of the most popular navigation applications on the market with functions available for smartphones, tablets and in-car navigation systems.