Garmin abandons bid for Tele Atlas to TomTom

[Deleted account 220427002]

U.S. navigational device maker Garmin said on Friday it dropped its pursuit of digital mapmaker Tele Atlas, clearing the way for rival Dutch bidder TomTom to seal the deal.
Tele Atlas shares tumbled 9 percent on the news, but Garmin stock jumped 14 percent as its withdrawal eased Wall Street concerns of a costly bidding war with TomTom.

Shares of TomTom also rose, gaining 8 percent as Tele Atlas was now expected to accept its $4.2 billion offer, which had trumped Garmin's $3.35 billion bid.

full story

also Garmin may build mapping network
Some analysts have said that Garmin may want to build its own mapping network. Dougherty & Co. analyst Jeff Evanson estimated it could cost Garmin about $2 billion and take at least three years to do that.

 

[Deleted account W]

Well that's pissed on my £70.38 offer.

They could have at least replied

 

[Deleted account 220427002]

Well that's pissed on my £70.38 offer.

They could have at least replied

It was meant to be in Dollars... Do you Know nothing about Takeovers

 

[Ash]

It was meant to be in pastry... Do you Know nothing about Turnovers

fixed it.

 

[Deleted account W]

fixed it.

Quality

 

[Ash]

Quality

i thank you.
i dont get envious very often but reading/viewing your thread of your days fun today made me want a drinky poos.

 

[Lord Snooty]

It is difficult to see where this leaves Garmin as Nokia recently bought the other mapping company Navteq. Could this mean less competetion in the GPS world??

 

[Droopy Dick]

It is difficult to see where this leaves Garmin as Nokia recently bought the other mapping company Navteq. Could this mean less competetion in the GPS world??

It might.

But on the other hand, these companies will need to sell their product as widely as possible to maximise their earnings.

As Garmin holds such a huge market share I can't see them cutting off the hand that currently feeds so many.

 

[bob emmerson]

It is difficult to see where this leaves Garmin as Nokia recently bought the other mapping company Navteq. Could this mean less competetion in the GPS world??

There is talk of Garmin setting up their own mapping company for half the cost of buying Navteq, taking about three years to get up to speed!

 

[Deleted account 220427002]

There is talk of Garmin setting up their own mapping company for half the cost of buying Navteq, taking about three years to get up to speed!

i refer the gentleman to post 1

 

[st13phil]

Seems to me like Garmin's counterbid ended up costing TomTom in the region of US$1.2 billion in increased acquisition cost. It's always good to increase your competitor's costs and that's not a bad return for a few weeks work. According to the ZDNet atricle, Garmin have signed a deal with Navteq for the next 6 years with an option on a further four years after that. I doubt Garmin are rushing to do much in the field of cartography for a while...

 

[zerocool]

remember a billion is not quite the same in all areas of the world.

So your £70 offer isnt as far off as you previously thought.

Garmin are stuffed now, all of a sudden all the manufacturers realised the market was going nowhere without significantly improving maps. They cannot do that as they dont own the maps, so the future of their respective companies relies on being able to own a map company and therefor improve the mapping.

TeleAtlas was always best for Europe so its great that TomTom won (as im a TomTom owner ). Garmin were left with second best and now they have lost that too.

I wonder where that leaves them???

This could be a bad move for Garmin and the market overall, competition is a healthy thing. Maybe this will give chance for other brands to step foreward?

Im almost certain Garmin will never sell with their "own maps". It takes decades to make a quality map, consider the miles they would have to cover and the constant roads refreshing that is required. There will be some serious prejudice against new maps as shoppers are starting to realise cheap units mean cheap/rubbish/out-of-date maps.

Can wait for next year, im sure there are some surprises for the techie lovers!

 

[ebbo]

Garmin do have some kind of long term deal with Navteq to continue supplying mapping, its posted somewhere here...

As for Tele Atlas being better mapping, after using Google maps of the Norway area I'd have to agree, its far superior.

 

[BurnieM]

Garmin WON !

They negoiated a good price, extended time deal with NavTeq and they cost a major competitor billions of euros.

You would almost think they planned it this way

 

[ebbo]

Garmin WON !

They negoiated a good price, extended time deal with NavTeq and they cost a major competitor billions of euros.

You would almost think they planned it this way

Well I would agree things have turned out ok for now, but time will run out eventually. I suppose they will develop there own Cartography section because they have a long way to go…

 

[BurnieM]

My best guess is that this did not just happen but was a deliberate negoiating strategy from Garmin.

Lots of things will happen with mapping data in the next 5 years and it will cost a lot of money to keep up. Managing what would effectively be 2 large companys would take a lot of effort.

Changes I see coming;
country wide speed limts
height and weight limits (for trucks)
visual display of roadside buildings (already occuring in Japan)
verbal command input