Google disclosed Thursday how much it paid for the Israel-based company behind the mapping app Waze: a whopping sum of $966 million.
After weeks of speculations about the how much Google had spent on the Waze acquisitions, search engine finally confirmed it had spent $966 million, a price a few million dollars shy of the earlier speculated price $1 billion+.
The price was indicated in the financial quarterly report that Google filed with the Securities and Exchange Commission Thursday. Apparently, the Web giant spent $847 million in goodwill, $188 million in intangible assets, and then minus $69 million in net liabilities.
“In June 2013, we completed our acquisition of Waze Limited (Waze), a provider of a mobile map application which provides turn-by-turn navigation and real-time traffic updates powered by incidents and route information submitted by a community of users, for a total cash consideration of $966 million,” Google wrote in the filing. “The acquisition is expected to enhance our customer’s user experience by offering real time traffic information to users’ daily navigation needs.”
Waze was founded in 2007 in Israel. The company’s eponymous app encourages drivers to get into their cars and share driving conditions and experiences with other members of the online community. Waze also provides real-time information on traffic and gives suggestions for short-cuts and stops along the way. The company will operate independently from Google for the time being according to the deal.
Waze has 50 million users and the company has recently raised $67 million in growth funding. The mobile navigation app is available for Android, iOS, Symbian, Windows Phone and for BlackBerry in Beta.
Google snapped up Waze six weeks ago after earlier reports that both Facebook and Apple were also interested in the app.
Some of Apple’s services such as Maps have been nearly useless since launching, and in order to fix that, Apple has tried to purchase other companies to fix its own product. Both Waze and Wavii were companies that Apple originally wanted to purchase and yet Google was able to beat Apple both times.
As one of the leading navigation applications, Waze would have helped Apple as it tries to improve Maps for iOS 7, but instead the company had to settle for HopStop.
Wavii was one of the larger acquisitions outside of Waze. Wavii will enhance the Web search functionality of Google. The service has only been around for a few years but has offered users the ability to search for the things that Wavii believes they care about, based on data it has collected about them.
In addition to spending $966 million on Waze, Google also completed 15 other acquisitions in the first half of 2013. For these other acquisitions, the Web giant spent $344 million. The tally for all 16 of the acquisitions, which includes Waze, comes to $1.31 billion.