With analysts hinting that Tomtom may have to sell off TeleAtlas in order to meet loan payments TeleAtlas have been quick to deny this is being discussed.
TomTom took a considerable financial gamble with the acquisition of mapmaker TeleAtlas following a bidding war with Garmin.
The combined effect of the purchase price and the global downturn has resulted in a very gloomy outlook for the Dutch Satnav brand with ever increasing losses and suggestions that loan covenants may be breached.
TeleAtlas confirmed that there had been no discussion on a possible split and that the two companies were stronger as a result of their integration.
But the real question is can TomTom hold on long-enough and survive the downturn? If the investors and creditors demand tough penalties then they may force TomTom into selling off TeleAtlas.
TomTom shares dipped following the suggestions of a split.
Posted by 0101 on Fri May 22, 2009 4:25 pm
If they did sell it off then TT might have enough cash to hire some decent software programmers so that their products could actually work properly. That might bring them in some new customers and keep old ones that are currently discontent.
Posted by p60 on Fri May 22, 2009 5:58 pm
Lets hope they can drop teleatlas altogether and get some more uptodate maps from Navteq,the latest map I just downloaded is worse still for directions to get on and off the A13 at junction with A112 as i've mentioned before this junction was completed nearly 10 years ago still no slip roads on map and directions are a shambles.
Posted by Philip on Fri May 22, 2009 6:10 pm
If they did sell it off then TT might have enough cash to hire some decent software programmers so that their products could actually work properly.
I have never had any problem with the programming - all my issues have been with the quality of the mapping data.
Posted by gatorguy6996 on Fri May 22, 2009 6:35 pm
IMHO, Darren, that's going to be a tough step for them to avoid. With the creditors recognizing that a fairly quick sale of TA makes the bulk of their obligations disappear, I expect that those due their money are pushing for just that. I think August is the deciding month as I recall, and that's fast approaching.
Would any of this affect the quarterly Map updates many of us have paid for?
Triumph Tbird 1700. And now a Bonnie T100 as well.
Posted by gatorguy6996 on Fri May 22, 2009 7:01 pm
I see no danger of that. TomTom has a hedge in that the map subscription is a yearly renewal and prices are not "locked in". And there's no chance of TomTom going to Navteq mapping IMO, even if TA is sold off. How much time and money would be involved in adapting IQ data to Navteq maps, considering there are roads and interchanges represented in each that don't appear on the other. Way too much trouble for TomTom to use anything but TeleAtlas maps.