Foursquare, whose check-in software has become widely popular by Android users all over and is only second to Gowalla, may very well be turning down a buyout offer by Yahoo Inc. for a rumored $100 million dollars. Are they holding out for more money or being gun-ho developers protecting their baby?
Is $100 Million A Lot?
When you compare $100 million to the previous offers other up-and-coming websites with explosive growth have gotten in regards to buyouts, it is actually on the low side. Facebook turned down an offer of $1 billion by Yahoo Inc. back in 2007. Facebook ironically got their offer of $500 million to buyout Twitter rejected in 2008. The question is: Is Foursquare really worth even $100 million? If it is, then what is Gowalla worth and why bother going for Foursquare when Gowalla seems to be the top check-in software right now?
What Is Foursquare?
Foursquare is a location based application where you ‘check-in’ whenever you arrive somewhere and gain points that after a while net you awards.
It is a sort of augmented reality game with a little social networking mixed in. By playing the game, you are also helping out the company as you building up their database of location based information. When you check-in, you also allow all your friends to see where you currently are and vise versa. Lastly, you are able to see specials and promotions from local businesses, some exclusively on Foursquare.
Should Dennis Crowley, the CEO of Foursquare pictured above, take the money and run? Maybe he'd be able to afford proper shirt stickers that don't fall off his shirt.