Is the company for sale? Their CEO Dennis Crowley had this to say, “we’ll have it resolved in a couple of weeks. I want to end the distractions and get back to work.” In other words, they want to end the tensions both internally and in the media to focus on developing their product.
What are their options? They can sell themselves for north of $100 million, or they can raise a new round and hope to grow their valuation for a later sale. Is there a company that would be good fit for Foursquare to join? If they have the cash you can bet that they are talking to Foursquare.
Why all the hype around the little company with just one million users? Location is the new status in terms of what is “in” for both investors and early adopters. As smartphones and iPads free people to move about, where they are is becoming more important. What you are doing is being followed by where you are doing it, a simple and logical progression.
Foursquare is the best location sharing game and tool that has been created thus far, with the possible exception of Gowalla, its similar and smaller rival. Gowalla has its own financial warchest, but with Foursquare’s user growth over the company the leader seems to have emerged.
As to exactly which rumors might have some weight, Crowley had sharp words, “People are just making stuff up at this point.” That said, there is as we noted no shortage of possible suitors from potential purchasers and presumably investors.
We will know soon. Sound off in the comments if you think they should sell, or stay independent.
Story via Bloomberg.