Dive summary:
- According to sources, both Microsoft and American Express want to take an equity stake in Foursquare Labs. Inc., and it's not a joint effort.
- In addition to Microsoft and AmEx, Foursquare is in talks with other companies and negotiating with venture capitalists who own convertible debt about turning their holdings into equity.
- The newfound interest in Foursquare is likely due to its new advertising approach that now lets advertisers target users based on where they check in.
From the article:
"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 competitors such as Apple Inc. (AAPL) Microsoft has previously put money into other startups, notably with a 2007 investment in Facebook Inc. (FB). that has grown in value and helped unite the software makers against their common foe, Google Inc."
