Photo: O’Reilly Conferences
After fielding offers from Silicon Valley’s top VCs and very generous valuations, why hasn’t Foursquare announced funding yet?
Why is Facebook still waiting to launch its now-confirmed “check-in” feature?
Are the two companies talking partnership? Merger?
The possibilities are tantalising, especially because we think if Foursquare really wants to sell, Facebook would be its best buyer.
We’re also pretty sure Facebook has interest in Foursquare at the right price. Remember, a few months ago there were some rumours that Facebook kicked the tires on Foursquare rival Gowalla.
And we’re not the only ones assuming Foursquare would go to Facebook for the right price. A couple weeks ago, a VC who at one point wanted in on Foursquare told us he was sure Dennis would sell the company to Facebook because CEO Mark Zuckerberg is “someone he admires.”
Another reason Dennis might sell to Facebook, even though he wouldn’t sell to others (like Yahoo or Google), is that Facebook seems to be pretty good at putting the people it brings in through acquisitions into positions where they have an impact on their new company.
The guys who who came to Facebook through its acquisition of FriendFeed are now deeply involved in crafting Facebook product.
Finally, a Facebook-Foursquare merger just makes product sense. The type of people users are “friends” with on Facebook are a lot like the type of people they’re “friends” with on Foursquare.
One reason to suspect a merger is not in the works is that we doubt Foursquare would survive as a standalone company after a Facebook merger. Dennis sold a company to a larger rival only to see his startup disappear, so maybe he’s not in the mood to do that again.
(A strong counter-point: Dennis didn’t sell that last company, Dodgeball, to Google for very much at all. $5 million? Selling to Facebook would make him rich AND allow him to impact a still growing company.)