TomTom, the Dutch navigation systems and digital map maker, has denied reports that its mapping unit, the former TeleAtlas, is for sale. TomTom bought TeleAtlas for EUR2.9bn in 2008 partly to thwart rival Garmin from buying it but also as a new revenue stream to help it build content.
TomTom has faced increasing competition from maps offered by Google and Nokia but executive committee member Taco Titulaer said that the mapping unit is part of its content assets and is not for sale.
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“Our content assets are core to our strategy and product offering,” said Titulaer.
“TomTom is not considering to divest or sell those assets, which includes mapping.”
Reports earlier cited industry sources saying that TomTom was considering the sale because Google was phasing out its partnership with TomTom and that location-specific content has lost some of its lustre due the rise of web sites and services such as Twitter, foursquare and Facebook.
Google maps and Navteq, which is owned by Nokia, are TomTom’s commercial rivals in the digital mapping market, which has seen increased offerings of maps on mobile phones, sometimes free of charge.
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By GlobalData
