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Garmin Doesn't Want To Be Left Without Maps... Bids On Tele Atlas
from the musical-mapping-chairs dept
Over the summer, navigation device maker TomTom announced plans to buy Tele Atlas, one of the two leading providers of mapping data. Earlier this month, Nokia announced plans to buy Navteq, the other major provider. That resulted in immediate speculation about how Garmin (TomTom's main competitor) would respond. Apparently, the answer is with lots and lots of money. Garmin has now put in an unsolicited bid of $3.3 billion for Tele Atlas, hoping to outbid its rival by 15%. So, at this point, a game of musical chairs begins, with Nokia, Garmin and TomTom fighting it out over the two mapping data providers. Since both TomTom and Garmin seem to feel that they need to have Tele Atlas, don't be surprised to see the price keep going up.
Reader Comments
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Tom Tom and Garmim need to buy Tele Atlas together. then cost is cheaper for both user and maker.then both company's use saved money to improve there product.
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How naive. The value of an improved product is nothing compared to the value of having exclusive access to data your competitors dont so you can put them in a chokehold!
Pardon me for being the cynic today. It is possible for businessmen to be noble. I just wont speculate as to the likelihood.
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I find this odd, only because Garmin currently uses Navteq for most of their gps's. TomTom uses Tele Atlas. Seems a bit odd to me, but maybe Tele Atlas has something in the works that we don't know about.
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I find this odd, only because Garmin currently uses Navteq for most of their gps's. TomTom uses Tele Atlas. Seems a bit odd to me, but maybe Tele Atlas has something in the works that we don't know about.
I think it's more caused by a fear that once Nokia takes Navteq, Garmin may not have *any* one who can provide maps...
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then why not just put in to buy Navteq? I don't see why they are going after Tele Atlas unless they have something everyone wants...
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Perhaps Nokia is just to big a competitor to bid against. It seems like Garmin and Tom Tom might be closer to financial equals than Nokia and Garmin.
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then why not just put in to buy Navteq? I don't see why they are going after Tele Atlas unless they have something everyone wants...
Because Navteq is more than double the price...
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getting hot
Let me see... where did i put those Tele Atlas stocks?... :)
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Garmin bids for Tele Atlas, tops TomTom proposal by 15%
(4:37 AM ET) TEL AVIV (MarketWatch) -- Garmin Ltd., (GRMN) the Cayman Islands producer of navigation and communications equipment driven by global-positioning technology, proposed to buy Tele Atlas NV for 24.5 euros ($35.31) a share, or 2.3 billion euros ($3.31 billion). Separately, Garmin reported third-quarter earnings rose 57%, and it named Cliff Pemble president and chief operating officer. Tele Atlas (TLATF) is the Gent, Belgium, producer of navigation and mapping technology.
Garmin said the deal is subject to conditions including antitrust clearances and receipt of at least two-thirds of Tele Atlas's share capital. Garmin said it has financing in place for the proposal. The offer price is a 2% premium to Tele Atlas's closing price of 24.01 euros in Amsterdam trading on Tuesday. It is 15% higher than TomTom's (TMOAF) proposal of 21.25 euros a share. And Garmin said it is 48% above Tele Atlas's stock price on July 20, before the deal proposals started. TomTom is the Amsterdam navigation-solutions provider. (Updates to add headquarters and description for TomTom.)
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Only two providers?
Are there really only two providers of map data? Where does Google and MSN get their map data?
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Re: Only two providers?
Teleatlas --> Google
Navteq --> MSN
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Re: Re: Only two providers?
Actually it's:
Google --> Navteq
MSN --> either or both
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i got a map of hidden treasure I'll sell Garmin for $1.3 million
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That's Unfortunate
I've always liked the fact that Google Maps and Garmin both use Navteq. Plus I prefer the Navteq stuff over Tele Atlas for some reason.
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maps.google.com --> Navteq
Google maps API --> Tele Atlas
FYI:
Yahoo --> Both
Mapquest --> Navteq or AND
"Geocoding data for map content in Google Maps is provided under license by Navteq North America LLC ("NAVTEQ") and/or Tele Atlas North America, Inc. ("TANA") and/or other third parties"
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magellan?
What is Magellan up to while this is going on?
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