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July 8, 2006

Microsoft to acquire TomTom?

Rumors are popping up around the ‘net that Microsoft may acquire Dutch GPS maker TomTom. Both Microsoft and TomTom are denying any such acquisition, although TomTom’s stock price shot up 6% (up to €32.41 as of last Tuesday) based on the rumors of a potential buy out from MSFT.

TomTom did not respond to requests for comment. The company's chief operating officer Alexander Ribbink has played down the speculation, telling Reuters: "That's news to me. I haven't heard about it".

After thinking about this one a bit, a TomTom acquisition might make sense for Microsoft. Currently the company makes Streets & Trips (AutoRoute in Europe), and has made no secret of the fact it wants a bigger piece of the PND pie.

Personally, I like the idea – Take TomTom’s good design and add Microsoft’s deep pockets and considerable marketing resources, and we might just actually get a TomTom/Microsoft product that functions correctly and has good customer support!

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