GPS, TomTom to make $4.2 billion bid for Tele Atlas
By Conrad Quilty-Harper 
posted November 18th 2007 2:44PM
posted November 18th 2007 2:44PM
The predicted bidding war between Garmin and TomTom over a takeover of Tele Atlas has certainly come to fruition, with TomTom all set to go ahead with a $4.2 billion bid taking place on Monday. Garmin stepped back from the brink on Friday, after offering a measly $3.3 billion. Tele Atlas's management must certainly be happy that the company didn't jump earlier, because it was only a few months ago that TomTom's offer was $2.5 billion. Does anyone else get the feeling that these numbers are starting to lose their meaning?
the numbers never had a meaning. who cares about GPS sales?
I find it difficult to assess if these numbers mean anything anymore. If someone please could put 2.5 billion in my bank account I'll write up an indepth report on if it means anything to me.
These number DO have meaning. I can assure you board members have been getting calls at all hours of the day and night for their OK to go along with these offers. The Excel sheets have been massaged so many times they are smoking at all four corners.
The reason these numbers are flying around a billion here and a billion there is because there are not that many mapping properties on the market right now - I think its like two. But now that Garmin no longer has a assured provider past 2015 I think they might allocate some R&D cash to some mapping tech so they are not left high and dry when their agreements expire.
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Garmin's genius. Here's the facts of what happened:
1.) TeleAtlas wins, because it likely will get 45% more loot out of this deal than it was expecting just four months ago.
2.) Garmin wins, because it ensured its continued access to Navteq mapping data well into the millennium, without overpaying for the privilege.
3.) Nokia wins, because as Navteq's new owner, it's secured a long-term source of recurring revenue from a financially strong and rapidly growing Garmin.
4.) And the loser in all this? That would be TomTom.
Congrats to Garmin's management for a game well played!
It's never good to get supply from your competitor. I wouldn't call 8 years long term.
TomTom will never have to worry about the source of their map data.
But in those 8 years Garmin will also have no debt and can focus it's cash on R&D, whereas TomTom will be stuck deep deep in debt from overpaying for a money losing company.
I dont care how cheap you can get your maps, no one will want them if your PND's suck.
I don't like either of it really, I like purchasing 3rd party name GPS units (Mio, and Sanyo) but if these big companies were to own the map makers, there goes my map updates, or worse yet, they will deny selling updated maps to the gps makers, rendering them out of business, only being able to buy WAY overpriced equipment.
-Dad...Why are all these cars coming towards us?
-******* 4,2 billion junk!
I've been using a TomTom for almost 3 years. All I can say is that TomTom and TeleAtlas deserve either other. Crappy US maps for buggy GPS devices from a company who's customer service is about as responsive and caring as an inner city absentee landlord.
M next road trip is with a Garmin 660/760.
I agree. I get lost almost as much as I find the place with TomTom. I am frequently instructed to turn on a road that does not, nor ever has, exist. I also am planning on getting a Garmin device.
Hopefully if Tomtom wins the bidding war, they can make Tele Atlas re-map Australia so we can do away with the useless coverage and updates that result. Sensis sucks, bring on Tele Atlas!!
I'm surprised that TomTom is worth Billions. I would have placed their value in the 100s of millions, but not in the billions.
I have a TomTom one, and I love it.
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I just bought a Navfly GPS system. Man I have to tell you it works "GREAT" It has 12 million POI, yep 12 Million POI's! I had a Tom Tom, man that never gave me great directions like how the Navfly GPS does. Like someone said before it gave me places to turn that don't even exist. I highly recommond people to look at the Navfly GPS because its very affordable and not crazy expensive as some of the Tom Tom or Garmin!