Analyst: Apple could buy out TomTom to fix Maps

By , Dec 12, 2012

Apple’s boss Tim Cook in a recent shakeup at the company’s top added Maps and Siri to the already vast range of responsibilities of SVP Eddy Cue. Apple’s ‘Mr. Fixer’, as he’s been called because of his expertise in Internet software and services, also a member of the Ferrari board, could be looking to make a takeover bid for TomTom, a Dutch vendor of automotive navigation hardware and software and Europe’s leading maker of navigation systems.

TomTom is a major data provider for Apple Maps and bringing the company’s expertise and data sets under Apple’s roof could help accelerate the pluming work needed to fix Apple’s service. Rabobank analyst Hans Slob wrote in a research report today that there’s a 30 percent chance that Apple will seek to acquire TomTom “because the Dutch software maker has the capacity to make speedy changes to correct any mapping errors or create new functions”

Bloomberg has the story:

“TomTom needs the cash from Apple, and Apple needs the know-how of TomTom,” said Slob, who estimated Apple would pay a price of as much as 10 euros per share for the supplier. A takeover is also a “royal way out” for the Dutch company’s founders, said Slob, who has a buy recommendation on TomTom and raised his share-price estimate by 38 percent to 5 euros.

Shares of TomTom climbed 7.2 percent to 4.12 euros on the news. The stock has gained 33 percent this year, putting TomTom’s current market valuation at around 906 million euros, or approximately $1.18 billion.

Do you think Apple could fix the majority of Maps woes by acquiring TomTom?

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  • Falk M.

    That’d be a cheap fix for a damn big drama for sure.

    • http://twitter.com/sharbeen Sharbeen

      Tomtom is a wonderful app. the maps are well placed. This is the best and fastest way to help apple save its maps. Developing their own maps is not gonna be a 1 day job. So let them start of this way and mean time while we use TomTom based system let them in the background put their own into its place. Google maps itself took a hell lot of time to get some details for our place. Mapping isnt a easy job.

      • http://www.facebook.com/joe.jonsen Joe Jonsen

        so true

      • Falk M.

        Yupp, also I think Apple needs a tool like Google’s Mapmaker…
        I just recently found out about it here in iDB comments and I was astonished…

        Too bad it’s not available to German maps… Pffft…

      • Jonathan

        TomTom is great in Europe; not so much in the US

  • http://www.facebook.com/joe.jonsen Joe Jonsen

    thats what they should have done its a simple obvious executive decision to by tom-tom that the new CEO should have made but he didn’t cause he sucks ( it will be tragic if google buy tomtom first..lol),… and the next thing apple needs to do is come out with an official IOS games controller but they wont cause they are too dumb…

  • http://www.facebook.com/SpideyRules Scott Curry

    So if I paid for the TomTom app, do I get a refund or am I just screwed??

    • http://www.facebook.com/antman217 Anthony Antunez

      We’d probably get screwed :(

  • http://twitter.com/richiepic Rich Nagy

    I already found traces of TomTom support. Search for Borhamwood, UK, then fold up the page (where you change view): “Data from TOMTOM…”

  • Eduardo Martinez

    I don’t have big issues with Apple maps, it works perfectly fine, except when I am in a big city and need bus directions, which doesn’t exist at all, and THIS is the big issue with maps. Given that this is not something tomtom provides I doubt it’d help apple.

  • https://twitter.com/MrElectrifyer MrElectrifyer

    No!!

    Don’t need their greed going that far; they’ll start removing all the functionality from TomTom apps (probably also delete all Android versions) and start making it only available in the latest public beta iOS versions like iOS 6.

  • http://www.facebook.com/antman217 Anthony Antunez

    If this does happen I think it would be awesome if Apple Maps includes all the features the TomTom app has such as alerts for red light cameras, speed limit warnings, schools or church warnings, integration with social networks to get directions straight from Facebook events or tweets, etc…
    Its would make Apple Maps WAY freaking better than Google Maps ever was. Offline maps would be a great addition as well.