UPDATED 05:17 EST / APRIL 01 2016

Amazon HQ NEWS

Amazon in talks to take a stake in HERE maps

Reports are surfacing that Amazon.com, Inc. is looking to acquire a stake in the digital mapping company HERE, which is the subject of a $2.8 billion buyout offer from auto makers Audi AG, BMW AG and Mercedes-Benz.

The German automobile makers entered into an agreement to acquire HERE last August, as part of their plans to develop self-driving cars. That deal has yet to be concluded, and sources linked to the companies say they’re looking for new potential partners to help finance the deal. Now, Amazon has emerged as one of the prime candidates, due in part to the strength of its cloud computing operations.

The plan is that Amazon will provide the computing power for whatever self-driving car system Audi, BMW and Mercedes eventually come up with. They need Amazon Web Services’ cloud computing capacity to ensure that HERE’s maps can cope with the constant updates regarding traffic, road and weather conditions collected from thousands of sensors fitted to vehicles.

“Amazon would take a stake as part of a broader deal to lock them in as a provider of cloud computing services,” one source familiar with the matter told Reuters.

The sources added that the automobile makers have held talks with other cloud computing firms, but that Amazon has emerged as the favorite.

Reuters says that any move would be a good one strategically for Amazon, which also needs accurate, real-time mapping capabilities for logistical purposes, as part of its new one-and-two hour delivery services, which are rolling out in the U.S. and Europe.

For Audi, BMW and Mercedes, HERE’s mapping system is essential to their self-driving car ambitions, as any smart vehicle will be totally reliant on real-time maps to calculate the best route to their destinations. Bringing Amazon onboard also makes sense from a financial perspective too, as it helps spread the cost of the acquisition and would also mean a greater volume of data about traffic conditions could be fed into the system.

Neither Audi, Mercedes nor Amazon would comment on the rumors. However, BMW issued the following statement to Reuters:

“The new owners Audi, Daimler and BMW have said from the start that they are open for new partners to join. We have noticed that there is lots of interest not only from potential partners from within the automotive industry, but also from other sectors.”

Other car makers, including Groupe Renault and the Ford Motor Company, as well as automotive supplier Continental AG, have also expressed an interest in taking a stake in HERE.


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