Microsoft and American Express are both pursuing the location-based social networking website Foursquare, according to a Bloomberg report on Friday.
The software giant and the financial corporation were so focused in separate negotiations with aiming to partner with Foursquare.
Foursquare is a social media app for smartphone devices wherein users are allowed to “check-in” at different venues based on the GPS hardware. Each check-in equals to points and badges. It currently has 20 million registered users as of April 2012 since its 2009 release. It recently received a valuation of $600 million which some critics would not believe but seemed to convince Microsoft and Amex in going after this app.
The company declared $2 million sales in their 2012 report. In addition, Foursquare is also earning revenue from its ad policy which is 300 percent more than their initial estimated earnings—a chief revenue officer told Bloomberg.
While it is unknown why Amex is going after the app, critics have different assumptions for Microsoft competing for the deal.
Microsoft may have been seeking to acquire the location app to strengthen its position in the social media as part of its reorganization plan after Ballmer’s departure. However, Techcrunch believe that the company may be after the data it needs for geolocation and local business information which could greatly improve Windows.
“This would improve the user experience of Windows 8, 8.1, Windows Phone 8, and the online desktop Bing experience,” according to TechCrunch.
Microsoft was not available for comment if the report was accurate. However, Foursquare refused to acknowledge the report.
Foursquare spokesman Brendan Lewis said an email to Reuters, "This falls squarely in the "rumors and speculation" category."
If rumors are true, it will not be an easy acquisition for sure even if Microsoft has the cash.
