The Street/Seeking Alpha Look at Garmin Decision to Bail on TA Acquisition

The Street says:

The pros:

- forced TomTom to pay more
- relieved stockholders

The cons:

- still has to find a long term solution for mapping data; may have to build its own
- "But is it [it is] unclear how the Navteq contract gives Garmin the market leadership it sought in its bid for Tele Atlas." (Yair Reiner, an analyst with CIBC Capital Markets in a note to clients)
- where will Garmin get features it said it wanted in bidding on TA: "more realistic representation of surroundings, improved mobile search capabilities, including Internet-enabled local search, and extend itself into newer segments like in-dash, portable and mobile-phone navigation… real-time content such as traffic data."

Seeking Alpha says:

- very big win
- sealed long temr deal with NAVTEQ
- forced 45% premium payment by TomTom
- avoided debt
- stock up and good holiday ads