Latest Foursquare Deal Gossip: Yahoo Walked Away, Facebook In The Picture

Dennis Crowley has it good

Tech’s hottest funding story drags on — Foursquare is still up for grabs.

Here’s the latest we’ve heard from a gossipy Silicon Valley source.

Take it all with a grain of salt. But don’t pretend like you don’t want to hear it.

  • Yahoo, which had offered Foursquare a $100 million buyout, is said to have walked away from the deal a few weeks ago. But Yahoo may be back with a lower offer.
  • Foursquare CEO Dennis Crowley is said to be trying to get Facebook to make a real bid. The problem, we hear, is that Facebook treats its stock as being worth a lot more than it is. Mark Zuckerberg was in New York last weekend and he met with Crowley, TechCrunch’s MG Siegler had reported. But visiting Crowley wasn’t the main reason for Mark’s trip, our source relays.
  • Khosla Ventures’ Gideon Yu is still the last VC standing after Andreessen Horowitz and Accel dropped out long ago.
  • Why would a young company sell so soon? We hear from another person that while Crowley may have some money from when Google bought his last startup, Dodgeball, the rest of the team could seriously use a cash infusion. And, of course, any acquisition now would make Crowley a multi-millionaire, which is a nice change of lifestyle.

How would Foursquare fit into Facebook?

That may have changed, now that Facebook just hired ex-Googler Erick Tseng to be its head of mobile products.

This is Erick’s real Foursquare profile, and according to his Facebook wall, he’s been power-testing Foursquare lately: His first “check-in” was April 27, and he’s checked in 43 times since then. (He also checked in 10+ times within 12 hours to earn the “Overshare” badge on May 2.)

This may mean nothing, of course — Erick could just be a late adopter for a tool that a bunch of his friends and pretty much everyone in the tech industry is using. Or maybe he’s actually trying to get to know Foursquare because he might soon be working on it. (Or, we’d add, because maybe Google was interested in it — not Facebook.)

Either way, it seems logical that Crowley and Foursquare might run Facebook’s location-based/mobile products, but not necessarily the main Facebook mobile apps/sites.

Crowley declined to comment.

Know more? Let us know at [email protected]!

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