Waze CEO Noam Bardin Waze Multiple reports suggest Facebook is close to buying Israeli navigation startup Waze for $1 billion. But Israeli publication Ynet now says the deal has been stalled.

The reason: Waze's founders don't want to move their development team to Silicon Valley.

"Calcalist has learned that following two intensive weeks of talks, both parties remain unyielding," Assaf Gilad writes. "Facebook conditioned the deal on the liquidation of Waze's activity in Israel and the relocation of some of its employees to Facebook's San Francisco headquarters."

This isn't the first time Waze has been caught up in $1 billion acquisition rumors. Earlier this year, there were false reports that Apple would buy Waze for the same amount.

But if Facebook is actually mulling over the deal, here's why industry sources think the acquisition could make sense. As told to Business Insider's Nicholas Carlson: