Microsoft possibly interested in TomTom

Rumors are starting to emerge that Microsoft wants to acquire Dutch PND manufacturer TomTom. Alexander Ribbink, Chief Operating Officer of the Amsterdam based company claims he doesn't know anything about a possible interest in his company by the world's richest man, Bill Gates.

Speculators on the Amsterdam stock market are very pleased with this rumor and seem very keen on the idea of TomTom changing owners. The TomTom share was the biggest climber yesterday. The share rose more than 6% in value and closed at a rate of € 32,41. (£ 22,2).

In the past there had been rumors that TomTom should fear Microsoft als a possible competitor, because the software giant allegedly had plans to conquer the fast growing market of navigational systems. It seems now that Microsoft needs the 'aid' of a third party to be able to do this.

Products

In the navigational area, Microsoft has already brought AutoRoute and Streets & Trips to the market. These are both route planners for desktop PC's, pocket PC's and smartphones. The market share of these products isn't all that big, because of the competition by PND's which are often a better buy because of cost and possibilities.

A possible takeover of TomTom could mean that Microsoft has plans to put it's products onto existing and future TomTom hardware. That way, Microsoft's software and TomTom's hardware could be united into one durable and user-friendly product.

For now, all this info is based on rumors. But as the saying goes: 'where there is smoke, there is fire...'