Mapmaker, Mapmaker, Make Me A Map (And Please Entertain My Takeover Bid) - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
10/31/2007
09:45 AM
Eric Ogren
Eric Ogren
Commentary
50%
50%

Mapmaker, Mapmaker, Make Me A Map (And Please Entertain My Takeover Bid)

It's a good time to be a mapmaker. As the digital mapping industry undergoes some serious consolidation with mergers and acquisitions, today Garmin threw a wrench into TomTom's bid for Tele Atlas by offering 15% more. A sign that GPS, LBS, and navigation apps are on the verge of exploding?

It's a good time to be a mapmaker. As the digital mapping industry undergoes some serious consolidation with mergers and acquisitions, today Garmin threw a wrench into TomTom's bid for Tele Atlas by offering 15% more. A sign that GPS, LBS, and navigation apps are on the verge of exploding?Today Garmin announced its intent to make a public offer for all the outstanding shares of Tele Atlas, which was in the process of being acquired by TomTom. TomTom bid $2.8 billion for the mapmaker back in July. Garmin's offer stands at $3.3 billion, at $35.35 per share. The move is an interesting one.

Nokia recently put a bid for Navteq on the table, with plans to integrate mapping applications further into its device portfolio. TomTom makes navigation devices and could use Tele Atlas's mapping content. Garmin also makes mapping devices, and is somewhat larger than rival TomTom.

"Given the high growth and rapid change the navigation market has undergone to date, we feel that now is the right time for Garmin to move ahead with this proposed combination with Tele Atlas," Chief Executive Min Kao said in a statement. He also mentioned that Garmin would allow the company to operate independently and make its content available to any company interested in licensing it. By stealing Tele Atlas from TomTom, it stands to make money licensing the content rather than having to fork over cash to TomTom for it.

TomTom hasn't responded publicly, but you know its board members are probably a bit hot under the collar right now. Whether or not it will come up with a competing bid is unknown, but it'll have to be a whopper to best Garmin's.

All this points to a larger issue, and that is the growing importance of mapping, GPS, and location-based services. Recent reports indicate that mapping applications represent the single largest revenue generator when it comes to downloadable mobile content. With GPS being installed on more phones and other devices, its ubiquity and penetration will only grow.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Can Cloud Revolutionize Business and Software Architecture?
Joao-Pierre S. Ruth, Senior Writer,  1/15/2021
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
News
How CDOs Can Build Insight-Driven Organizations
Jessica Davis, Senior Editor, Enterprise Apps,  1/15/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll