These Acquisition Targets Are Better for Facebook Inc (FB)

TomTom has also embarked on strategies to stay competitive. That includes creating a navigation app for Parrot, which is known for its wireless devices for mobile phones. It is listed on NYSE Euronext Paris (Eurolist B). It has developed an Android based mobile app, and it has partnered with TomTom on a new navigation app. Drivers with the app will get voice instructions via their car stereo.

Unlike other apps, TomTom notes that this app uses on-board maps, which are always accessible even without a network connection.

And like the old adage says, if you can’t beat them, join them. Last year, TomTom struck a licensing deal with Apple Inc. (NASDAQ:AAPL) for its operating system.

However, there could be problems with Facebook Inc (NASDAQ:FB), or anyone one else for that matter, in acquiring TomTom. That’s because the company’s four founders control 47% of the company and aren’t eager to sell, according to the Wall Street Journal.

Conclusion

Garmin Ltd. (NASDAQ:GRMN) and TomTom may be struggling in the wake of the smartphone. Google Inc (NASDAQ:GOOG) may have beaten Facebook to the punch in carving out more market share when it comes to ads and mapping services. However, a near perfect stage has been set for Facebook Inc (NASDAQ:FB) to acquire either one of them.

The social networking company has been under pressure to increase its ad revenues from shareholders who are still disgruntled about the stock not trading anywhere near the IPO’s $44 price.

According to eMarketer, mobile advertising spending grew 178% last year to about $4 billion. It attributed much of that growth to Facebook as well as a strong performance from Google Inc (NASDAQ:GOOG). Spending is expected to rise a further 77.3% to $7.29 billion this year.

Buying Garmin or TomTom can better position Facebook Inc (NASDAQ:FB) in carving out more market share. It would also help it keep Google Inc (NASDAQ:GOOG) from eating its lunch as it did when it swooped in and bought Waze. Garmin Ltd. (NASDAQ:GRMN) or TomTom should rank high on Facebook’s target acquisition list.

The article These Acquisition Targets Are Better for Facebook originally appeared on Fool.com and is written by Tedra DeSue.

Tedra DeSue has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook Inc (NASDAQ:FB). Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.