Exciting news? Not really, but it could mean improved service and better products with TomTom’s announcement to buy map-provider Tele Atlas. TomTom is rumored to have purchased the company for $2.5 billion. Sure it’s a lot of money, but think about what you’re getting with that deal. Tele Atlas is currently the supplier of TomTom’s data.
This news will also shake up other map companies. Mapquest sucks and to be honest, I haven’t used it since Google Maps came along. Luckily, this acquisition is bound to shake up execs at both companies, possibly forcing them to come out with new features to stay fresh and compete. Daily map updates could also become a reality once the deal goes through. Sounds like a total win for both consumers and TomTom.
TomTom to buy map supplier Tele Atlas [Reuters]
Check out http://local.live.com/. It kicks the bejesus out of mapquest and google maps.
The financial metrics of the deal look bleak when considering Tele Atlas’ current operating approach. But there are definitely operating efficiencies that can be realized when merged with TomTom’s hardware. I did a brief post on the topic on my blog:
http://www.thegpsinsider.com/2007/07/24/tomtom-deal-spells-the-end-for-orange-tele-atlas-vans/