Google Inc (GOOG) to Buy Navigation App for $1.3 Billion

Facebook Put Limits on its Potential Transaction

The $1.3-billion bid is reported to be $300 million more than what Facebook offered. The Google bid landed Waze a tidy sum, but it was also Facebook’s rejection to keep Israeli workers in the company living in Israel that muzzled the deal. That lack of flexibility caused Waze to “unfriend” the social networking site, and that attitude could leave Facebook in the dust on future deals. Israeli newspaper Ha’arz stated Google’s acquisition is largely motivated by the company’s desire to block Facebook from growing. Google already operates a navigation service that was a Waze competitor, and the firm has invested a significant amount of money in the Google Street View images. For that reason, Google certainly didn’t want competition coming from Facebook.

This acquisition tells me two things: Google is serious about maintaining market share, which bodes well for investors; and Facebook will have a difficult time diversifying itself, which limits the company’s growth. Furthermore, Apple has its work cut out for it to maintain dominance in nearly every tech field imaginable. Google is in town, and the company means business.

The article Google to Buy Navigation App for $1.3 Billion originally appeared on Fool.com.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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