Microsoft is reportedly deep in discussions with Foursquare about making a strategic investment in the location-based social media service, Bloomberg reports, citing two anonymous inside sources. Bloomberg notes that the investment is far from finalized and Foursquare has met recently with a number of companies to discuss similar investments.
Microsoft's talks with Foursquare about a strategic investment are said to be at an advanced stage.
— Dina Bass (@dinabass) August 29, 2013
The renewed interest in Foursquare is likely due to the belief that the long-popular social network may begin to draw in steady profits now that it’s introduced targeted advertising to its mobile service. The company raised $41 million in debt last year in a move that allowed it to avoid an IPO in favor of slow growth.
Despite competition from rival companies and venture capitalists, Microsoft may have an edge in its pursuit of Foursquare. The two companies collaborated on a Windows 8 app, which merges the Modern UI design with the location based service, and was released recently. Perhaps the two have bigger plans down the road. Microsoft certainly isn’t a stranger to acquisitions.