Car-Navigation Company Acquires

Earlier today, I reflected on the eventual fallout of the inevitable bursting of the Web 2.0 bubble.

While we are in the midst of a mildly speculative Web 2.0 bubble, I surmised, the damage and wreckage it will cause will be nowhere near as severe as what was left behind by the original Internet implosion.

Some of the Web 1.0 companies remained with us and evolved, and a few even prospered. Amazon, Yahoo, and Google are prime examples, but several others managed to stay the course and remain relevant.

One of those was, founded back in 1998, which was acquired today for $179 million in cash and stock by Navteq Corp., purveyor of automobile-navigation systems.

It’s an acquisition that makes sense. Not only was Navteq already using’s customized traffic reports in its navigation systems, but clearly’s traffic-monitoring services have maximum value when they are provided on the dashboard display of a car rather than on separate devices on which a driver would be forced to fire up a web browser, presumably before he or she began a journey.

With more than 600 employees, Wayne, Pa-based serves 50 metropolitan areas throughout the U.S. and approximately 100 million drivers, of which 70 million are daily commuters. It had revenue of $453.3 million in fiscal 2005.


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