There is the possibility that Google just wants to keep Waze away from other suitors like Facebook and Apple, which were also rumored to be interested in acquiring the company.
"The hefty price tag speaks to that mentality," said Altimeter's Silva.
"[Google] has to think hard about whether it wants the game changed, or is willing to make a big offer that lets it keep the lead," said Michigan's Gordon. "It usually takes about 15 minutes to decide."
The potential deal was first reported by Israeli business site Globes, followed by The Wall Street Journal and others.
Waze is currently available on the iPhone, Android and select Blackberry, Nokia and Windows mobile devices.
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