Chris Leckness

TomTom, probably the world's most successful GPS company has decided that paying Tele Atlas each year for digital mapping is a bad move... and instead is going to pay 1.8 billion Euros and buy the company.

TomTom is pretty flush with cash at the moment and this would seem to be a good move especially as they're looking at new services and features in their products. They probably also have a close eye on Nokia's online GPS system and the likes of Google Maps, which use the most up to date mapping available at any given time and update themselves as they go.

A possible strategic query over the proposed deal lies in the fact that Tele Atlas also supplies maps to Nasdaq-listed Garmin, TomTom's main rival.

TomTom said Tele Atlas would honour existing contracts, raising the question of why TomTom would allow a wholly-owned company to supply its main competitor with technology that will compete directly with its own.

 

Source: Financial Times

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harpgliss

Hi,

Quote:

TomTom said Tele Atlas would honour existing contracts, raising the question of why TomTom would allow a wholly-owned company to supply its main competitor with technology that will compete directly with its own.

I think you answered yourself with this

Quote:

existing contracts

.

For the life of the current contract with garmin, there would be little choice but to honour the contrct in place.

There is always negotiations or court but these make little sense as I am sure Garmin would reject the first and win in court.

bigdave240

Originally Posted by psionandy

TomTom, probably the world's most successful GPS company has decided that paying Tele Atlas each year for digital mapping is a bad move... and instead is going to pay 1.8 billion Euros and buy the company. TomTom is pretty flush with cash at the moment and this would seem to be a good move especially as they're looking at new services and features in their products. They probably also have a close eye on Nokia's online GPS system and the likes of Google Maps, which use the most up to date mapping available at any given time and update themselves as they go. A possible strategic query over the proposed deal lies in the fact that Tele Atlas also supplies maps to Nasdaq-listed Garmin, TomTom's main rival. TomTom said Tele Atlas would honour existing contracts, raising the question of why TomTom would allow a wholly-owned company to supply its main competitor with technology that will compete directly with its own.   Source: Financial Times View Original Blog Post

Nice catch, Andy! I have never been much of a fan of tele atlas maps as they seemed to be a bit oudated compared to navteq but I bought my wife a pretty inexpensive GPS system for her car and it has TA on it and the maps seem to be as up to date as what I have for iGuidance 3 and even some better in my neighborhood where some streets were added in the last couple of years. hopefully this will mean even better maps for the end user in the future now that they control it.

JakeRich

The downside is that when the existing contracts expire TT may (most likely "will") not continue to provide those other vendors the data, forcing them to go NavTeq or even leave the market space. I don't see much upside to the individual consumer in this move. I see fewer options available to us in the future. And fewer options invariably mean higher prices.