Foursquare in Talks with Tech Firms for Strategic Investment as Ad Business Improves
Foursquare Labs Inc. is in talks with multiple large technology companies about a potential strategic investment, according to people with knowledge of the discussions.
The social-media company, which lets users check in to show they’re visiting a location, is also negotiating with venture capitalists who own convertible debt about turning their holdings into equity, said the people, who asked not to be identified because the information isn’t public.
The discussions suggest that potential investors are more bullish on Foursquare’s prospects after it began reaping the benefits of a new advertising approach that lets brands target users when they’ve checked into a locale. Foursquare in April raised $41 million in debt, a move that let it keep tinkering with an unproven business model while delaying debate about the company’s true worth.
