) loves buying expensive companies -- particularly those that
) is also interested in obtaining. Before acquiring Instagram for
$1 billion, Apple was rumored to be
interested in buying the firm
. While this report has never been confirmed, the thought is that
Apple wanted to use Instagram to bolster iOS -- and specifically
sales of future iPhones.
It is not hard to imagine how this would work. Apple could
have used Instagram to enhance its
barrage of photography commercials
, and tease the fact that users can quickly alter and stylize
images with a single touch.
Some might argue that this would have been the perfect iPhone
gimmick -- the kind of app that Apple could have used to sell the
iPhone 5. After all, if Apple had purchased Instagram more than a
year ago as rumored, it could have maintained the app's iOS
exclusivity by cancelling the Android version before it was even
That might have been bad for Instagram's short-term growth
prospects, but it could have been huge for Apple.
of Instagram's 100 million users are on Android. If Apple had
kept Instagram for itself, the company could have used its
clever marketing techniques
to lure customers away from Android.
Apple was not willing to pay $1 billion, however, so Facebook
Now the social media giant is looking to spend another billion
on another acquisition. The new target is
, a community-based traffic and navigation app for iOS and
Investors may remember Waze for its
about Apple after the company failed to deliver a reliable
mapping application for iOS 6. Despite the negative comments,
Apple was rumored to be interested in Waze's technology.
With a rumored price tag of $500 million, Apple would have
paid less for Waze than Facebook paid for Instagram.
Now that Waze has passed the Apple test (in which a company is
good enough to consider but not actually good enough to buy), it
seems that Facebook is willing to take the plunge.
, Facebook is willing to pay $1 billion for Waze. Sound
Apparently the key to a successful buyout is to start by
getting Apple's attention and then run over to Facebook and ask
for $1 billion.
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
louis(at)benzingapro(dot)com. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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