One of our first thoughts after hearing about Yahoo’s $100 million deal to buy Associated Content: Does this mean Yahoo’s $100 million deal for Foursquare is toast?
No, not necessarily.
Yahoo still has plenty of cash to spend on acquisitions, and just because Foursquare and Associated Content are both around the same deal size, it doesn’t mean Yahoo wouldn’t buy one just because it bought the other.
Buying Associated Content represents a bet on owned-and-operated content and ads.
Buying Foursquare represents an entirely different bet — mobile social networking, location-based services, mobile ads and coupons, etc.
So whether Yahoo buys Foursquare or not — the latest gossip was that Yahoo had dropped its bid, but may be back — it has nothing to do with today’s deal.
Don’t miss: Smart Move By Yahoo (Buying Associated Content)
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