Tech Industry

Map this: Apple in talks to buy Waze for $500M, report says

Apple is willing to pay Waze up to $500 million, but the social-navigation specialist is reportedy looking to net $750 million in the deal.

Update 10:51 a.m. PT: A source has confirmed to CNET that Apple has no plans to acquire Waze. Click here to read the full story.

Apple and social-navigation app maker Waze might soon come to terms on a lucrative deal for the startup.

The iPhone maker is in talks to acquire Waze, TechCrunch is reporting today, citing sources who claim to have knowledge of the negotiations. Those sources say that Waze is looking to net $750 million in the deal, but Apple is so far only willing to offer $400 million in cash and an additional $100 million in earn-outs, based on performance.

Waze is a relatively popular social-navigation app. The service has over 30 million users who share real-time traffic information as they drive around the world. Waze uses that information to deliver improved driving directions. The app also lets users share with others the things they come across on the road, including police car locations, accidents, and just about anything else they deem appropriate for the community.

Apple's reported interest in Waze is likely the result of the troubles it's experiencing with Maps, a built-in application in iOS that it launched last year. Maps was met with criticism as users found it to lack detail and contain errors. Apple CEO Tim Cook apologized for Maps' troubles and promised a better offering in the future.

Maps has been such a concern for Apple that the company has been rumored to be scouring the mapping business to find companies that it could acquire to bolster its application. Last month, analyst Hans Slob of Rabobank International, said that he believed there was a 30 percent chance of Apple offering to acquire TomTom.

CNET has contacted Waze and Apple for comment on the TechCrunch report. We will update this story when we have more information.