Foursquare has been the digital darling lately and sources have told AlleyInsider that Yahoo is considering buying the location-based service for a cool $100 million.
I’m not really the biggest fan of Foursquare – I find it’s primarily populated by tech hipster douchebags at the moment. But the service does have the potential to attract a mass audience, as shown by some of the major national deals it has been able to ink. Additionally, there’s potential for a real business model because it could offer advertisers and retailers critical data about its users.
The company is currently looking to raise funding and reports suggest it is finding interest from heavy hitters for a valuation of nearly $80 million, so the Yahoo talk could just be fuel to raise more cash. Foursquare CEO Dennis Crowley is probably not hurting for cash – he sold Dodgeball to Google a few years ago – so he may not be seeking a quick exit. He may not be eager to sell out to another big player because he’s already seen one baby die at the hands of a big web company (one could argue that Dodgeball features are now in Buzz, though).
Of course, there’s no guarantee that Foursquare will become a smash hit with the mainstream and companies like Gowalla, Loopt and Yelp are also dabbling in this space. Google and Facebook are also waiting in the wings to make a hard push for location-based services, which could also make that $100 million look a little sweeter.
For Yahoo, this is a relatively cheap move that could give it some nerd cred again. It also fits in with its larger corporate overhaul to integrate mobile into more of its products and services. Everyone knows LBS will be the next big thing and a splashy acquisition won’t guarantee success, but it would be a solid step in the right direction.
[Via AlleyInsider]