Analyst: Apple may make an offer to acquire mapping firm TomTom

By on December 12, 2012, 6:30 PM

An analyst from the Netherlands believes that Apple is interested in purchasing GPS and mapping company TomTom as a quick fix to their own Maps fiasco that continues to drag on. Hans Slob from Rabobank International told investors today that there’s a 30 percent chance that Cupertino will make an offer on the firm.

Slob reportedly told investors that TomTom needs the cash and Apple needs the mapping data to supplement their own Maps iOS app. He said that TomTom has the capability to make fast changes that could be used to correct mapping errors. Furthermore, they can implement new features and functions much faster than Apple would be able to.

It’s unclear at this hour if the analyst is basing his advice on some insider information or is just making a far-reaching prediction but given his analysis, an acquisition would make sense for both parties involved.

He believes Apple would be prepared to pay as much at 10 euros per share and that it would be a great way “out” for TomTom founders. He has since put a buy recommendation on TomTom and raised share price estimates by 38 percent.

Share value in the Dutch-based company climbed to an eight week high as news of the analyst’s prediction spread to investors. The news helped the stock gain 33 percent of its value this year, giving the company a value of roughly $1.17 billion.

Do you think it would be wise for Apple to hire outside help for their mapping application?




User Comments: 11

Got something to say? Post a comment
St1ckM4n St1ckM4n said:

Oh wow, here we go..

Littleczr Littleczr said:

If I was apple I would pay in a heart beat.

St1ckM4n St1ckM4n said:

I seriously hope they don't, though. I mean, this has to stop.

Apple tried their own way and failed hard. "Oh well, we'll just buy a company with all our spare cash". Apple holds out on the maps update, releases iPhone 6 with updated maps to much fanfare. Silly sheep will think the product is amazing, giving amazing sales in return to Apple, who once again will have billions to spend on experiments.

RzmmDX said:

And that's how you play the stock market.

ShadowDeath said:

And here is where we find out that Apple stabbed Google in the back just to spite themselves. lol

misor misor said:

@ appl, ego is priced that much, eh?

it would have been better for apple and google if apple just allow the default use of google maps for iOS.

bugejakurt said:

I have used Apple's mapping application and have to admit I haven't found many major issues throughout "known" cities around the world. I appreciate if these bad locations can be identified so that Apple may take an action on these areas first.

ghasmanjr ghasmanjr said:

To add insult to injury, Google released (or rather Apple allowed the release of) the new iOS Google maps app a few hours ago. Thank God...now I can finally download iOS 6. I wasn't giving up my Google maps.

Burty117 Burty117, TechSpot Chancellor, said:

I have used Apple's mapping application and have to admit I haven't found many major issues throughout "known" cities around the world. I appreciate if these bad locations can be identified so that Apple may take an action on these areas first.

I have to agree with you there, I haven't actually found that many errors (well none so far) in the UK, I live on the outskirts of London and it appears to be just fine?

I do still use the TomTom app though if I'm going somewhere quite far (such as somewhere up North) so if Apple bought tomtom the better in my mind, as long as TomTom continue to run like normal and sell GPS units etc... just Apple get access to the core TomTom Software to do what they like to it for the iPhone.

nazartp said:

Based on my personal experience I swore off TomTom GPS units - they sucked so bad. Now seeing Apple buys it to fix their bad maps is just entertaining.

m4a4 m4a4 said:

No. I respect TomTom and I have absolutely no more respect for crApple. I can't see this working out too well......

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.