Facebook is in advanced talks to acquire Israel-based mobile satellite navigation company Waze for upwards of $1bn, according to an Israeli press report.
The deal, which would be Facebook’s largest acquisition, would give the social networking company a mapping service and allow it to better compete with Google Inc and Apple Inc.
Maps and navigation services have become a key asset for technology companies as consumers increasingly adopt smartphones and other mobile devices.
Waze, whose backers include Qualcomm Ventures, the corporate venturing division of wireless telecommunication and semiconductor corporation Qualcomm, uses satellite signals from members’ smartphones to generate maps and traffic data, which it then shares with other users, offering real-time traffic info.
Due diligence between Waze and Facebook is underway after a term sheet was signed, business daily Calcalist said, adding that talks began six months ago.
Waze has raised nearly $70m in funding from investors including BlueRun Ventures, Kleiner Perkins, Magma Venture Partners, Vertex Venture Capital and Horizons Ventures Hong Kong. Horizons represents the venture investments of the Hong Kong-based billionaire businessman Li Ka-Shing.