Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Bloomberg: Microsoft In Talks To Invest In Foursquare

RELATED NEWS
Trade MSFT now with 

Software giant Microsoft Corp. (MSFT: Quote) is in talks about making a strategic investment in social network Foursquare Labs Inc., Bloomberg reported Thursday, citing people with knowledge of the discussions. The report also indicated that American Express Co. (AXP: Quote) is competing to take an equity stake in Foursquare.

New York-based Foursquare is a location-based social networking website for mobile devices, including smartphones. Users "check in" at venues using a mobile website, text messaging or a device-specific application by selecting from a list of nearby venues that the application will locate, and can share relevant tips. The service was launched in 2009 by Dennis Crowley and Naveen Selvadurai.

Foursquare currently has iOS, Symbian, Series 40, MeeGo, Android, WebOS, Windows Phone, Bada and BlackBerry, and recently, PlayStation Vita applications. The company has recorded more than 4 billion check-ins.

Bloomberg reported that Foursquare is also in talks with venture capitalists who own convertible debt about turning their holdings into equity. Foursquare is funded by Union Square Ventures, O'Reilly AlphaTech Ventures, Andreessen Horowitz, Spark Capital and a group of angel investors.

These talks are seen as an indication that potential investors are more optimistic about Foursquare's prospects after the company started to reap the benefits of a new advertising approach that enables brands to target users when they have checked into a locale. In April 2013, Foursquare raised $41 million in debt.

According to the Bloomberg report, a stake in Foursquare would give Microsoft, the world's largest software maker, a bigger role in social media and mobile, areas where it has lagged behind rivals such as Apple Inc. (AAPL).

Foursquare has reportedly helped Microsoft by making an application for its Windows 8 operating system, which has had trouble attracting developers because of the popularity of Google's Android and Apple's iOS software for smartphones and tablets.

On Thursday, Foursquare announced a limited Android release of a new version of its application that uses passive location to deliver proactive recommendations. The updated application uses a user's phone location to give nearby recommendations. The service will later be expanded to all Android users and iOS users.

MSFT closed Thursday's trading at $33.55, up $0.53 or 1.61 percent on a volume of 45.28 million shares.

Register
To receive FREE breaking news email alerts for Microsoft Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.