Google has paid over a billion dollar to acquire the Israeli Startup GPS navigation firm Waze (link), but why? Most of us has never heard of Waze before now. And why pay $1.1 billion for a company that makes less then $70Mil in revenues?!
Is Google beyond all reason on this acquisition deal? Did any of Google’s previous over-a-billion-dollar takeovers fail to pay back? There must be some very good reasons that justifies paying over a billion dollar, but Google is not known for sharing the reasons for their decisions. With some research, few possible reasons for such a steep investment come to light, which can also shed some light on the reason for the US FTC to investigate further this acquisition.