Facebook Might Snatch Another Company From Apple
After Instagram, Facebook is now interested in Waze.
Facebook (NASDAQ:FB) loves buying expensive companies -- particularly those that Apple (NASDAQ:AAPL) is also interested in obtaining.
Before acquiring Instagram for $1 billion, Apple was rumored to be interested in buying the firm. While this report has never been confirmed, the thought is that Apple wanted to use Instagram to bolster iOS -- and specifically sales of future iPhones.
It is not hard to imagine how this would work. Apple could have used Instagram to enhance its barrage of photography commercials, and tease the fact that users can quickly alter and stylize images with a single touch.
Some might argue that this would have been the perfect iPhone gimmick -- the kind of app that Apple could have used to sell the iPhone 5. After all, if Apple had purchased Instagram more than a year ago as rumored, it could have maintained the app's iOS exclusivity by cancelling the Android version before it was even released.
That might have been bad for Instagram's short-term growth prospects, but it could have been huge for Apple.
Nearly half of Instagram's 100 million users are on Android. If Apple had kept Instagram for itself, the company could have used its clever marketing techniques to lure customers away from Android.
Apple was not willing to pay $1 billion, however, so Facebook won out.
Now the social media giant is looking to spend another billion on another acquisition. The new target is Waze, a community-based traffic and navigation app for iOS and Android.
Investors may remember Waze for its uncensored statement about Apple after the company failed to deliver a reliable mapping application for iOS 6. Despite the negative comments, Apple was rumored to be interested in Waze's technology.
With a rumored price tag of $500 million, Apple would have paid less for Waze than Facebook paid for Instagram.
Now that Waze has passed the Apple test (in which a company is good enough to consider but not actually good enough to buy), it seems that Facebook is willing to take the plunge.
According to TechCrunch, Facebook is willing to pay $1 billion for Waze. Sound familiar?
Apparently the key to a successful buyout is to start by getting Apple's attention and then running over to Facebook and asking for $1 billion.
Below, find some more great ETF and market content from Benzinga:
McDonald's Down on Slow April – Avian Flu, Stiff Competition, Poor Customer Service All Cited
Martin Sorrell and the Growth of Digital Media
HTC's Facebook Phone Flopped Because it Lacked the 'Cool Factor'
Benzinga Pro covers this and all market news in real time. Get your free trial here.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter