August 30, 2013
Microsoft is courting Foursquare Labs in the hopes of winning a stake in the social media company, sources have told Bloomberg.
While the software giant and Foursquare have been in talks for some time and a deal seems likely, it still has not been reached, the sources said.
That could be because Foursquare has also been meeting with other companies and is even negotiating with venture capitalists about investing in its location-based social networking website.
Foursquare’s revenue has surpassed expectations and in April raised $41 million in debt to allow it to continue “tinkering with an unproven business model” while putting off discussions on its value, according to the report.
“I think we’ve proven our business model,” Rosenblatt told Bloomberg in a previous interview. “Our business model is very clear and it’s working, doing what we thought it would do, if not more. It’s all well ahead of what we anticipated.”
A deal with Foursquare would give Microsoft a more substantial stake in social media and mobile — two areas in which it is lacking. The company is now putting a major focus on mobile in a bid to become more competitive with Apple, Google and Samsung.
Foursquare recently aided Microsoft with the creation of an app for its Windows 8 operating system — a system that has had trouble attracting the interest of developers who have been content to focus on making apps for Android and iOS Smartphones and tablets.