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
Commentary
Study Proposes 5 Primary Traits of Innovation Leaders
Joao-Pierre S. Ruth, Senior Writer,  11/8/2019
Slideshows
Top-Paying U.S. Cities for Data Scientists and Data Analysts
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/5/2019
Slideshows
10 Strategic Technology Trends for 2020
Jessica Davis, Senior Editor, Enterprise Apps,  11/1/2019
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll