Everyone here at PLuGHiTz Live! Radio that has a phone capable of using Foursquare uses it constantly but fortunately for Foursquare their user base extends beyond us and continues to grow by leaps and bounds. This is part of the reason why this location-based social networking service has been receiving enormous amounts of attention from investment groups and large Internet companies such as Yahoo! and Facebook. The other reason is because interested companies like the amount of innovation the service has seen over the past several months. Many of the talks with prospective investors have come close to closing but have fallen short. Their deal with Facebook, which is who Foursquare CEO and co-founder Dennis Crowley wants to work with the most, is on the rocks as they are finding it difficult to negotiate for more cash rather than stock in the social networking giant.
Foursqure has also been involved in an on-again-off-again relationship with Andreessen Horowitz, a venture capital firm. The two companies were discussing an 80 million dollar deal when Horowitz backed out saying the negotiating process was too complicated, lengthy and public for their liking. Three weeks ago Horowitz made another offer for less than the original 80 million but the amount is unknown.
It seems like Foursquare is playing around with some big and wealthy companies but I'm not sure they will be in a position to drag them along much longer. They have already been in negotiations for several months with Facebook and Andreessen Horowitz, seemingly their two most interested potential investors, but they aren't getting the interest that Twitter received despite the fact that their service is much more useful and innovative. That being said, it will be interesting to see who they sign a deal with, for how much, and what they will be able to do with the funding.